The Minerals Income Investment Fund (MIIF) has called for sustained stakeholder engagement towards the review of aspects of its legal and governance framework to ensure its long-term sustainability.
The reviews are also expected to enhance MIIF’s ability to deliver benefits from the country ’s mineral wealth.
The Chief Executive Officer (CEO) of MIIF, Justina Nelson, made the call on behalf of the Fund, following concerns raised by civil society organisations (CSOs) about the recent amendments to the fund’s governing law which had reduced its share of mineral income to two per cent, with the bulk of royalties and dividends now paid into the Consolidated Fund.
The CSOs which participated in a roundtable with MIIF last Friday, raised issues about MIIF’s operational capacity, investment role and long-term sustainability.
Under the Minerals Income Investment Fund Act, 2018 (Act 978), mineral income — made up of royalties and dividends — was paid into an account controlled by MIIF, which retained a substantial portion for investment and operational purposes, while a share was allocated to other statutory bodies.
Under the amended arrangement, however, all mineral income are first paid into a Minerals Income Holding Account managed by the Ministry of Finance and the
Controller and Accountant-General, with two per cent disbursed to MIIF, while the remainder is lodged in the Consolidated Fund for other uses.
The engagement formed part of efforts to deepen transparency and address public concerns about the fund’s mandate and activities.
It was also intended to promote open dialogue and correct misconceptions about the operations of the fund.
The CSOs included those in governance, energy, environment, natural resources and the extractive sector.
While management of the fund acknowledged the concerns over its operations, revenue structure and investment performance, the CEO commended CSOs for consistently playing a critical role in promoting accountability and influencing policy direction, particularly within the extractive sector hence the engagement was significant.
“Your voices have helped draw national attention to vital issues, influence policy direction and demand improved outcomes for our country,” Ms Nelson said.
Performance
The MIIF CEO said in spite of the challenges, the fund had taken steps to strengthen its internal structures to enhance performance and accountability.
She mentioned the establishment of Compliance and Environmental, Social and Governance (ESG) units, as well as a fully-fledged risk management department supported by a governance risk framework.
“These measures help to ensure that investment decisions are taken with a clear understanding of exposures and long-term sustainability,” Ms Nelson said.
She added that monitoring and evaluation systems had also been strengthened to track the performance of investments and ensure value for the country.The CEO of MIIF also disclosed that the fund had undertaken a strategic review of its portfolio to assess performance and guide future decisions.
Ms Nelson said while some investments were performing well, others had faced challenges and were being restructured.
“We instituted a strategic review committee to be able to review the investments… and advise where we need to stay, we stay; where we need to exit, we exit,” the
CEO, who is a trained banker said.
She cited the gold trade investment as one of the areas the fund had exited, adding that efforts were underway to recover the funds involved.
Responding to concerns raised by participants, Ms Nelson acknowledged the need for stronger governance frameworks and clearer provisions within the law.
She said lessons from past challenges would guide reforms to position the fund to better serve both current and future generations.
Revenue structure
The Chief Finance Officer at MIIF, David Awuah Mensah, explained that amendments to the law had significantly changed how mineral income was distributed.
He indicated that although mineral royalties had increased steadily over the years, rising from about GH¢1.3 billion in 2020 to GH¢5.43 billion in 2025, the fund now received only a small portion for its operations and investments.
“What is available to the fund now is just two per cent of mineral income,” he said.
He added that under the current arrangement, a substantial portion of mineral royalties and the entire dividends realised were paid into the Consolidated Fund, limiting the fund’s direct access to the resources.
Strategic direction
Outlining the way forward, Mr Mensah said the fund’s strategy for 2026 to 2028 would focus on maximising revenue from mining operations, ensuring optimal returns on investments and strengthening institutional governance.
He said the fund would intensify efforts to improve royalty collections, particularly from large-scale and mid-tier mining companies, while ensuring strict adherence to investment guidelines.
“We will follow them up and ensure they pay their royalties appropriately,” he said.
Source:
www.graphic.com.gh