Gov’t slashes mineral fund’s share of royalties to 2%, sparking transparency concerns
By Benson Afful
Government’s recent amendment to the Minerals Income Investment Fund (MIIF) Act has slashed the fund’s statutory share of mineral royalties from 80 percent to 2 percent, sparking worries about the country’s ability to manage its mineral wealth sustainably.
The 2 percent allocation is earmarked for MIIF’s operational costs, effectively ending its role as a sovereign wealth fund (SWF)
In a recent report published by the National Resource Governance Institute on Understanding Ghana’s Mineral Income Investment Fund argues that this move prioritizes short-term infrastructure gains over long-term economic stability, undermining MIIF’s original mandate to invest in high-yield assets and promote economic diversification. The remaining 98 percent of mineral royalties will flow into the Consolidated Fund, controlled by the Ministry of Finance, raising concerns about transparency and accountability.
The amendment has also raised questions about MIIF’s future role in Ghana’s mineral revenue system and its ability to support local mining expansion and negotiate with multinational companies.
