Food suppliers operating under Ghana's Free Senior High School programme are facing severe financial pressure due to the government's failure to settle approximately GH¢250 million in outstanding payments. This debt has left many suppliers struggling to service bank loans used to finance supplies to schools. The suppliers also obtained agricultural produce from farmers on credit, compounding their financial obligations while waiting for payment.
According to Cornelius Koku Logo, Secretary of the Controlled Food Suppliers Association, many suppliers relied heavily on borrowed funds to purchase food items for delivery to Senior High Schools. The association made repeated attempts to resolve the matter through government institutions, including the National Food Buffer Stock Company and the Ghana Commodity Exchange, before writing to the Ministry of Education in July.
The suppliers engaged government institutions in April and subsequently followed up with the Ministry of Finance to secure clarity on when their outstanding obligations would be settled. Despite these efforts, payments for food delivered during the 2024 and 2025 academic year remain outstanding. This prolonged delay has placed their businesses, relationships with financial institutions, and arrangements with farmers under considerable strain.
The Controlled Food Suppliers Association has now issued the government a two-week ultimatum to begin negotiations and provide a definite schedule for settling the outstanding debt. The suppliers are demanding a clear and credible payment timetable. The association says the debt relates to food supplied to Senior High Schools during the 2024 and 2025 academic year.
Recent reports confirm that the association has demanded an immediate engagement and a time-bound payment plan. The suppliers' financial struggles have significant implications for the Free Senior High School programme, which aims to provide education to Ghanaian students. The programme's success relies heavily on the suppliers' ability to deliver food to schools.
The Ministry of Education and the Ministry of Finance have been involved in discussions with the suppliers. However, a resolution to the issue remains pending. The suppliers' concerns highlight the challenges of implementing large-scale programmes and the importance of timely payments to service providers.
The outcome of the negotiations between the government and the Controlled Food Suppliers Association will be crucial in determining the future of food supplies to Senior High Schools in Ghana. The association's ultimatum has set a deadline for the government to respond and provide a payment plan.
Key points
- The Ghanaian government's GH¢250 million debt to food suppliers is affecting the Free Senior High School programme.
- Suppliers are demanding a clear payment timetable to settle outstanding debts.
- The Controlled Food Suppliers Association has issued a two-week ultimatum for government action.
