The government’s proposal to transfer 80% of the Minerals Income Investment Fund (MIIF) into the Consolidated Fund for infrastructure development has raised concerns among economic analysts and industry experts.
The move, as outlined in the 2025 Budget Statement, could severely weaken MIIF’s ability to invest in high-yield assets that would ensure long-term financial stability.
Experts warn that this decision risks turning Ghana into a classic example of the boom-and-bust cycle, where mineral revenues are quickly depleted without creating sustainable economic benefits.
Financial analyst Nii Addo Lawman is arguing that, “The proposal to transfer 80% of MIIF’s funds to the Consolidated Fund may provide short-term fiscal relief, but at the cost of long-term financial security. This move will not only undermine MIIF’s operations but could cripple it, thereby defeating the purpose for which it was established.”
He explains that “Ghana risks becoming another cautionary tale of a resource-rich country that mismanages its wealth, rather than harnessing it for sustainable economic transformation.”
Lawman pointed to global examples of how countries have successfully managed their natural resource wealth to ensure long-term stability. “Norway’s Government Pension Fund Global (GPFG), for instance, has grown into a $1.4 trillion fund, securing financial stability even as oil production declines. Bahrain’s Mumtalakat Fund also prioritises investment over direct government spending, ensuring economic sustainability,” he noted.
He warned that if Ghana proceeds with this amendment, MIIF will struggle to invest in local mining operations and strategic assets, which could have long-term consequences.
“MIIF could have grown into a $10 billion sovereign wealth fund over the next 15 years, generating enough revenue to support government infrastructure projects while maintaining financial stability. Instead, we risk losing investor confidence and reducing our ability to fund local mining initiatives,” he stressed.
Lawman urged the government to reconsider the policy and adopt a hybrid model that balances investment with infrastructure development.
“Rather than stripping MIIF of its resources, a better approach would be to allow it to invest and grow, ensuring that Ghana’s mineral wealth serves the country long after the resources are depleted,” he counselled.
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