Ghana: GHEITI raises red flags over changes to MIIF revenue framework

The Ghana Extractive Industries Transparency Initiative (GHEITI) has raised concerns over the 2025 amendments to the Minerals Income Investment Fund (MIIF) Act, warning that the changes could undermine the Fund’s original mandate as a sovereign wealth fund.

In its newly published 2023 EITI Reports, GHEITI observed that following the amendments, MIIF now manages only two percent of mineral revenues due to the Fund.

According to GHEITI, this significantly reduces the volume of mineral income available to MIIF for long-term investment.

GHEITI noted that while the amendments give the Minister of Finance greater flexibility in the utilisation of mineral revenues, they depart from the original objectives of MIIF, which include promoting intergenerational equity, stabilising revenue flows, and investing mineral income for sustainable national development.

The Initiative reiterated longstanding concerns with the MIIF framework, including the frequency of royalty payments, non-taxation of dividends, weak transparency provisions, and the absence of clear mechanisms to safeguard future generations’ interests.

GHEITI further observed that the 2025 amendments were not preceded by broad stakeholder consultations and did not sufficiently incorporate recommendations made in its 2020 report.

In addition, GHEITI expressed concern about the absence of a monitoring and accountability framework for the 78 percent of mineral revenues transferred to the Ministry of Finance, noting that this gap is inconsistent with best practices in natural resource revenue management.

GHEITI recommended that withdrawals from the Mineral Income Holding Account should be governed by clear rules similar to those under the Ghana Petroleum Funds.

It also called on Government to convene a national dialogue on the MIIF Act and the broader management of mineral revenues to develop a comprehensive and transparent revenue management framework.