GHEITI Flags Governance Gaps in Ghana’s Mineral Revenue Framework After MIIF Amendments
Ghana’s framework for managing mineral revenues has come under renewed pressure after amendments to the Mineral Income Investment Fund (MIIF) Act narrowed the Fund’s role, according to the Ghana Extractive Industries Transparency Initiative (GHEITI).
In its latest assessment, GHEITI said changes introduced in 2025 have cut the share of mineral income flowing to MIIF to just two percent, a move it warned could undermine the Fund’s founding purpose as a long-term investment vehicle for the state.
MIIF was created to invest mineral royalties in a way that supports national development while preserving wealth across generations. However, GHEITI said expanded ministerial discretion over the use of mineral revenues risks turning the Fund away from its sovereign wealth-style mandate.
The watchdog noted that the amendments were passed without broad stakeholder engagement and did not reflect recommendations outlined in its 2020 report, which had flagged gaps in governance, transparency, and intergenerational safeguards. Previous concerns also included the structure of royalty transfers, tax treatment of dividends, and limits on disclosure.
Beyond the Fund itself, GHEITI highlighted wider weaknesses in Ghana’s mineral revenue management system. It said the current framework does not align with international best practice, which typically balances present-day development spending with long-term savings and fiscal buffers to manage commodity price swings and resource depletion.
A central issue, the report said, is the handling of the majority of mineral revenues. About 78 percent of mineral income is transferred directly to the Ministry of Finance, yet there are no formal mechanisms to track spending efficiency or assess the developmental impact of projects funded from these resources.
The absence of clear criteria for project selection, reporting on fund disbursements, and transparency around implementation has weakened accountability, despite earlier gains in tracking mineral revenue inflows, GHEITI said.
To address these gaps, the initiative recommended introducing governance rules for withdrawals from the Mineral Income Holding Account, modeled on the framework used to manage Ghana’s petroleum revenues. It also called for stronger reporting standards to link mineral income more clearly to development outcomes.
GHEITI further urged the government to convene a national consultative forum on the MIIF Act and the broader mineral revenue regime, aimed at building consensus around reforms that strengthen fiscal discipline, transparency, and long-term investment planning.
The warnings come at a time when mineral revenues remain a key source of funding for public expenditure, reinforcing the need for governance structures that ensure Ghana’s natural resource wealth delivers lasting economic benefits.
