Ghana needs stronger transparency, accountability in mineral revenue management – NRGI’s Stephenson

Patrick Stephenson, Country Manager for Ghana at the Natural Resource Governance Institute, has called for stronger transparency and accountability in the management of mineral revenues, particularly under Ghana’s Minerals Development Fund (MDF).

Speaking at a stakeholders’ engagement on governance and disbursement of mineral royalties, Stephenson highlighted concerns about the failure of revenue administrators to fully comply with existing laws. According to him, this persistent gap has eroded trust and negatively impacted the equitable management of resources within Ghana’s mining value chain.

He pointed to challenges in the administration of funds, including delays in disbursements, which he said have hindered critical development projects in mining communities. These delays, he noted, affect social investments intended to improve livelihoods in areas where mining activities take place.

Stephenson also raised questions about recent legislative reforms affecting the Mineral Income Investment Fund (MIIF). While acknowledging efforts to enhance the institution’s operational independence, he cautioned that the changes bring up concerns about sustainability, governance, and oversight.

He explained that the evolving framework appears to allow the fund to identify and develop viable projects, subject to approval by the Finance Minister, with the aim of reinvesting mineral royalties into the sector. However, he stressed that such arrangements must be backed by a transparent and accountable governance structure.

“We need to do better in transparency and accountability,” he noted, adding that this is essential to ensure that sub-national revenues are effectively utilized for the benefit of local communities.

Samuel Bekoe, Executive Director of the Centre for Extractives Development Africa, has raised fresh concerns over recent amendments to the Mineral Income Investment Fund (MIIF), warning that the changes could weaken the fund’s ability to deliver long-term value for Ghana.

Speaking at a stakeholder engagement on mineral revenue governance, Bekoe said the revised mandate of MIIF focused on generating “the best possible returns” remains too vague to guide effective investment decisions.

He also highlighted the sharp reduction in allocations to MIIF, from 80% to just 2%, describing it as a move that raises serious concerns about the government’s commitment to the fund.

“By reducing MIIF allocations to 2 percent, you are basically telling the fund to operate on minimal resources, and it raises the question of whether we still see MIIF as a critical investment arm. For you to set up a fund like MIIF, it is to solve inherent challenges such as price volatility and pro-cyclical expenditure, which does not support sustainable development,” he said.

He stressed that without a clearly defined mandate and stronger governance structures, the fund may struggle to achieve its intended purpose, particularly in securing wealth for future generations.

Drawing lessons from successful sovereign wealth funds in countries like Norway, Chile, and Botswana, Bekoe underscored the importance of independence, transparency, and professional management.

“These funds have clear governance structures, defined investment rules, and regular reporting systems that engage citizens. That level of transparency is critical because these resources belong to all Ghanaians,” he emphasized.

Bekoe proposed a reassessment of the allocation framework, suggesting that a portion of mineral revenues such as 20% could be directed to MIIF, provided governance issues are addressed.

“That allocation must be utilised efficiently, whether in infrastructure, the mining value chain, or strategic investments that generate returns. If government still sees MIIF as an important investment vehicle, then it must commit resources and fix the governance architecture to make it more transparent, accountable, and responsive to the public,” Bekoe concluded.

Co-Chair of GHEITI, Dr. Steve Manteaw in his presentation on Key findings on MDF transfers, governance gaps, and EITI insights called for improved oversight, clearer regulations, and more flexible guidelines in the management of Ghana’s Mineral Development Fund (MDF), warning that weak implementation could leave mining communities facing long-term consequences.

Speaking on the challenges surrounding the use of mineral royalties, Dr. Manteaw noted that several mining communities have suffered economic decline after resource extraction activities slowed, with some areas effectively becoming “ghost towns.” He stressed that without deliberate and well-managed reinvestment of mineral revenues, such communities risk enduring decades of underdevelopment.

He expressed concern about the absence of robust rules governing MDF utilization, despite earlier efforts by the Ghana Extractive Industries Transparency Initiative to develop local-level guidelines in 2015. According to him, those efforts were overtaken by the passage of the MDF Act, which mandated the development of regulations within a year an expectation that has yet to be fully realized.

Turning to civil society organizations (CSOs), Dr. Manteaw emphasized the importance of sustained advocacy beyond the passage of laws. He observed that while CSOs played a key role in pushing for the MDF Act, many failed to follow through on its implementation, creating a gap that has hindered progress. He urged them to actively monitor enforcement, ensure necessary legal instruments are in place, and advocate for institutional readiness.