The government’s proposal to transfer 80% of the Minerals Income Investment Fund (MIIF) into the Consolidated Fund for infrastructure development has sparked concerns among economic analysts and industry experts.
The move, outlined in the 2025 Budget Statement, is feared to weaken MIIF’s ability to invest in high-yield assets that ensure long-term financial stability.
Experts warn that the decision could push Ghana into a boom-and-bust cycle, where mineral revenues are quickly depleted without generating sustainable economic benefits.
Financial analyst Nii Addo Lawman cautioned, “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 further explained, “Ghana risks becoming another cautionary tale of a resource-rich country that mismanages its wealth, rather than harnessing it for sustainable economic transformation.”
Lawman cited global examples of countries that have successfully managed their natural resource wealth to ensure financial 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 the amendment, MIIF will struggle to invest in local mining operations and strategic assets, leading to long-term economic 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 advised.