Communities hosting mining companies in Ghana risk further underdevelopment due to the proposed amendment of the Minerals Income Investment Fund (MIIF) Act, 2018 (Act 978), as amended.
This concern has been raised by the Member of Parliament for Juaben in the Ashanti region, Francis Owusu-Akyaw.
The proposed amendment seeks to transfer 80% of mineral royalties, originally managed by MIIF, to the Consolidated Fund to finance government development initiatives.
Parliament, under the Akufo-Addo administration, passed Act 978 in 2018, later amended by the Minerals Income Investment Fund (Amendment) Act, 2020 (Act 1024), to maximize the value of mineral income for national benefit. The fund was designed to monetize Ghana’s mineral revenues in a responsible, transparent, and sustainable manner while also mitigating the budgetary impact of mineral income fluctuations.
However, the newly elected John Mahama-led government, through the 2025 Budget and Policy Statement, has initiated steps to amend the law further. The amendment aims to ensure that 80% of the royalties held by MIIF are transferred to the Consolidated Fund to support the BIG PUSH infrastructure agenda.
During his contribution on the 2025 Budget and Policy Statement in Parliament on Monday, March 24, Juaben MP, Mr. Owusu-Akyaw raised concerns about this move, warning that it would deprive host communities of much-needed development.
He questioned the nature of infrastructure projects that would be undertaken using the diverted MIIF funds, emphasizing that there is no clarity on whether these projects will benefit mining communities directly.
Mr. Owusu-Akyaw also expressed concern that the amendment could result in minimal state investment in mining activities, contrary to the objectives of the MIIF law. He warned that the proposed change might lead to the neglect of host communities where mining operations take place.
“Is it infrastructure aimed at developing the mining sector, from which these revenues originate, in line with MIIF’s objectives, or just any infrastructure? How much will be reinvested into boosting mining operations if the funds are redirected elsewhere?” he asked.
He further cautioned that if a substantial percentage of the funds is allocated to unspecified infrastructure projects, mining communities could be left without the necessary development initiatives they deserve.
“This is a risky path for any government to take,” Hon. Francis Owusu-Akyaw stated.
