ACEP raised concerns over MIIF’s investment strategy, Proposes Alternative Framework

ACEP raised concerns over MIIF’s investment strategy, Proposes Alternative Framework

The Africa Centre for Energy Policy (ACEP) has commended government‘s move to amend the Minerals Income and Investment Fund (MIIF) Act but has called for a more comprehensive policy shift. The think tank recommends abolishing the MIIF Act entirely and replacing it with a Mineral Revenue Management Act to enhance governance, financial accountability, and transparency in mineral revenue utilization.

ACEP raised concerns over MIIF’s investment strategy, citing a lack of transparency, suboptimal financial decisions, and Environmental, Social, and Governance (ESG) risks. Kodzo Yaotse, Policy Lead for Petroleum & Conventional Energy at ACEP, stressed the need for a rigorous value-for-money audit of all MIIF investments, holding fund managers accountable for any financial mismanagement.

APEX BROKERS

 

The organization is particularly critical of MIIF’s opacity regarding its investment portfolio. While the Fund has publicly disclosed a $20 million stake in Asante Gold Corporation, there is little information on how it has managed the GHS2.5 billion in mineral royalties received so far. ACEP argues that, given Ghana’s fiscal challenges, mineral revenues should be directed toward socio-economic development rather than discretionary investments with limited oversight.

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ACEP Urges Overhaul of MIIF Act, Proposes Mineral Revenue Management Framework

Key Recommendations for Policy Reform

In its 2025 budget analysis, ACEP has outlined three major reforms to improve mineral revenue management:

Abolition of the MIIF Act and Disbandment of the Fund: Redirecting mineral royalties to direct national development initiatives instead of discretionary investment schemes.

Introduction of a Mineral Revenue Management Act: A governance framework similar to the Petroleum Revenue Management Act (PRMA) to ensure mineral revenues are transparently allocated to public investment projects.

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Comprehensive Audit and Oversight: A forensic audit of all MIIF investments, with fund managers held accountable for financial inefficiencies or losses.

MIIF was originally established to support the now-defunct Agyapa Royalties deal, which faced widespread opposition and was eventually rescinded. Despite this, the government continues to allocate 80% of risk-free mineral royalties to MIIF, raising concerns over the lack of direct public benefit from these revenues. ACEP argues that these funds could be better utilized to address Ghana’s pressing economic and infrastructural needs.

ACEP urged policymakers to take decisive steps to improve mineral revenue governance, strengthen oversight frameworks, ensure transparency in investment decisions, and align mineral revenues with national development priorities, all of which are critical for sustainable economic growth.

Last Updated on May 12, 2025 by Samuel Kwame Boadu

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