ACEP Recommends Abolishing MIIF Act, Calls for Introduction of Mineral Revenue Management Act
The Africa Centre for Energy Policy (ACEP) has welcomed the government’s proposal to amend the Minerals Income and Investment Fund (MIIF) Act but has also recommended a more comprehensive review of the Fund’s operations, citing concerns over its opaque investment strategy, suboptimal financial decisions, and significant Environmental, Social, and Governance (ESG) risks.
Kodzo Yaotse, Policy Lead for Petroleum & Conventional Energy at ACEP, has emphasized the need for greater transparency and accountability in MIIF’s operations, stressing that a value-for-money review of all existing MIIF investments is essential.
ACEP’s Recommendations for Reform
In its 2025 budget highlights, ACEP has proposed key measures to address governance and financial management issues within MIIF. These include:
- Conducting a comprehensive value-for-money audit of all MIIF investments, with Fund managers held accountable and prosecuted if found responsible for financial losses.
- A firm government commitment to abolish the MIIF Act and disband the Fund, redirecting mineral royalties to direct socio-economic investments.
- The introduction of a Mineral Revenue Management Act, similar to the Petroleum Revenue Management Act (PRMA), to govern mineral revenue expenditure transparently rather than relying on allocations from the Consolidated Fund.
Concerns Over MIIF’s Investment Strategy
ACEP has raised alarms over MIIF’s lack of transparency regarding its investment portfolio. While the Fund has publicly disclosed a $20 million investment in Asante Gold Corporation, there is little information on the GHS2.5 billion in mineral royalties it has received so far. This, according to ACEP, is deeply concerning given Ghana’s fiscal challenges and the urgent need for socio-economic investments to improve citizens’ welfare.
The MIIF was initially created to support the now-defunct Agyapa Royalties deal, which faced widespread opposition and was ultimately rescinded. Despite this, ACEP notes that the government has continued to allocate 80% of risk-free mineral royalties to MIIF for discretionary investments—resources that could have otherwise supported national development priorities.
Call for Policy Reform
With the government considering amendments to the MIIF Act, ACEP is urging policymakers to take decisive action to enhance transparency and accountability in mineral revenue management.
Strengthening governance frameworks, improving investment oversight, and ensuring mineral revenues directly benefit Ghanaians remain key priorities for sustainable economic development.
