Road toll reintroduction: Solution or burden?

The debate over road tolls in Ghana has resurfaced as the government plans to reintroduce toll collection to enhance road infrastructure financing. Following its controversial suspension in 2021, road tolls are poised to return. 

As Ghanaians prepare for this policy shift, one significant question lingers: Will this be a solution to Ghana’s road infrastructure challenges or merely another financial burden on citizens?

Ghana operated road tolls for nearly 40 years before their abolition in November 2021.

First introduced in 1985 to generate revenue for road maintenance and infrastructure development, the system faced growing concerns over congestion, inefficiencies and alleged mismanagement.

As a result, the government scrapped road tolls in the 2022 Budget Statement, shifting its focus to the E-Levy, a tax on electronic transactions, as an alternative revenue source.

Before their abolition, road tolls contributed approximately GH¢78 million annually to the Ghana Road Fund.

Although this amount is relatively small compared to the country’s total road financing needs, it played a crucial role in maintaining and rehabilitating roads.

Why?

With Ghana’s road infrastructure facing severe deterioration due to underfunding, the government has realised that alternative funding mechanisms are necessary.

The de-capping of the Ghana Road Fund in the 2025 Budget aims to ensure that all funds generated for roads go directly into maintenance and rehabilitation. 

However, the government believes that reintroducing road tolls will further strengthen road financing efforts.

The new policy, among others, aims to generate additional revenue for road maintenance and construction, reduce the government’s reliance on external loans for road projects and improve infrastructure sustainability by ensuring users contribute to maintenance costs.

Potential benefits

Ghana could significantly increase funds available for road repairs and new projects if road tolls are properly managed. Also, road tolls could be structured in a way that attracts

Public-Private Partnerships (PPPs), leading to the development of road tolls managed by private companies, as seen in other countries.

To strengthen Ghana’s road to reintroduction, it is useful to examine how other countries have successfully managed or struggled with toll systems.

These examples provide insights into best practices and potential pitfalls Ghana should consider.

Successful models    

South Africa – Gauteng Freeway Improvement Project (GFIP): South Africa introduced an electronic tolling system (e-tolls) on highways around Johannesburg and Pretoria under the GFIP.

The system was designed to reduce congestion and fund road maintenance.

While initially met with public resistance, the government improved communication and implemented discounts for frequent users. 

The project demonstrated that automated tolling reduces inefficiencies, provided that public engagement and transparency are prioritised.

Nigeria – Lekki-Epe Expressway (PPP Model) Nigeria has used Public-Private Partnerships (PPPs) to finance and operate tolled roads, with the Lekki-Epe Expressway in Lagos being a prime example.

Private investors built and managed the road under a concession agreement, ensuring timely maintenance and expansion.

This approach has shown that PPPs can help reduce the government’s financial burden while ensuring that funds are effectively utilised for road development. 

This PPP success story did not last due to public opposition to what the people of Lagos described as unfair pricing.

This led to the Lagos State Government buying back the concession in 2013, ending full private control. 

The key lessons for Ghana are that PPP-tolled roads must balance profitability with affordability to gain public acceptance. Transparent agreements and public engagement are also crucial to avoid resistance.    

United States (State-Level Tolling Success) – Several U.S. states, such as Florida and Texas, have successfully implemented electronic toll collection (E-ZPass, SunPass) to eliminate long queues and prevent revenue leakages.

These systems use RFID tags and cameras for seamless transactions.

A key lesson is that a well-integrated digital toll system improves efficiency and reduces corruption.

Challenges, failures

Kenya – Manual Tolling and Corruption Issues: Kenya previously relied on manual toll collection but struggled with revenue leakages due to corruption and inefficiencies.

The government eventually scrapped toll booths in favour of a fuel levy, shifting the cost burden to fuel consumers. Ghana can avoid this by ensuring strict oversight and adopting automated tolling.

Uganda – Delayed Public Acceptance: Uganda introduced tolls on the Kampala-Entebbe Expressway.

However, initial public backlash arose due to unclear communication on toll rates and usage of funds. Over time, however, transparency efforts and visible road improvements helped gain public trust.

This underscores the importance of clear public education before implementing tolls.

Key takeaways

• Adopt electronic tolling to reduce congestion and revenue leakages.    
• Use PPPs effectively to attract private investment while ensuring public benefits.    
• Ensure transparency through public communication and oversight.    
• Prevent corruption by avoiding manual toll collection and enforcing accountability. By learning from global best practices, Ghana can implement a sustainable, efficient and publicly accepted tolling system.

Recommendations

As Ghana prepares to reintroduce road tolls, the Ghana Chamber of Construction Industry (GhCCI) urges the government to implement policies that ensure transparency, efficiency and real benefits for road users.

For instance, it would be necessary to explore an electronic tolling system to avoid the long queues and chaos of the past—introduce a cashless, automated tolling system to speed up payments and prevent congestion.

Also, there is a need for transparency in the collection and distribution of the funds.

Of utmost importance is the need to ensure that the revenue is strictly used for road maintenance - for periodic and routine works and not ‘fanciful new developments’.

To engender trust, we also urge the government to publish annual reports on how funds are collected and spent.

Toll rates should be reasonable and progressive, ensuring heavy-duty vehicles pay more while keeping costs manageable for everyday drivers. 

We also recommend that the funds be used to support local construction companies to build Ghanaian expertise.

The government must educate the public on why road tolls are returning, how funds will be used and what improvements to expect.

A strong independent oversight system should track toll revenue and road projects to prevent waste and corruption.

Solution or a Burden?

The reintroduction of road tolls has the potential to significantly improve Ghana’s road infrastructure, provided it is implemented transparently, efficiently, and fairly.

However, if poorly managed, it could become another burden on citizens without addressing the country’s real road challenges.

For this policy to succeed, the government must ensure that toll funds are properly utilised, commuters are not overburdened and alternative solutions like PPPs and electronic toll systems are explored.

The success of road tolls will ultimately depend on how well the revenue is managed and whether Ghanaians see real improvements in their roads. 

The question remains: Will this policy drive Ghana’s roads forward or leave us stuck in another financial pothole?

The writer is the General Secretary, 
 Chamber of Construction Industry.