Ben Boakye, the Executive Director of the Africa Center for Energy Policy (ACEP), has called on President John Dramani Mahama to take decisive action regarding the Mineral Income Investment Fund (MIIF), which he says has failed to live up to its intended purpose.
Boakye expressed concern that the MIIF has not delivered on its potential to foster development, and he provided a detailed critique of its creation and the subsequent use of Ghana’s gold royalties.
The MIIF was established as a vehicle to facilitate the Agyapa Royalty Investments, a controversial scheme designed by former Finance Minister Ken Ofori-Atta and his Deputy Charles Adu Boahen. The plan sought to sell Ghana’s gold royalties on the London Stock Exchange. Boakye explained that when Parliament passed the MIIF Act, they were unaware of the true intentions behind it, namely the Agyapa transaction. The government valued Ghana’s royalties from its 48 most promising mining concessions at $1 billion, with plans to sell 51% of that value for around $500 million.
Boakye, however, was vocal in his opposition to the deal, arguing that it was improper to treat Ghana’s mineral royalties in the same way as a royalty streaming business. He pointed out that there were fundamental issues with assuming values for mineral deposits that were still under exploration, as well as the mismatch between the investor and state positions on resource valuation. He added that the idea of offloading such valuable assets was not only flawed but unconscionable.
Although the Agyapa transaction was eventually blocked, Boakye noted that Ghana missed out on a potential $865.5 million in royalties in just four years. He stressed that the MIIF, now controlling the royalties, has not been an effective instrument for national development. Instead of directly supporting the country’s development, MIIF has been used to fund politically connected ventures, school reunions, and small-scale mining operations, alongside heavy administrative costs.
Boakye also pointed to broader concerns over the country’s social infrastructure, particularly the inadequate provision of water, education, and healthcare, while MIIF continues to grow wealthier. He warned that the current situation entrenching inequality, diverting resources from the national budget, and giving agencies discretionary control over funds, is untenable. Civil society organizations, including ACEP, have urged the government to reverse this situation, freeing up resources for more impactful development initiatives.
Furthermore, Boakye recommended the merger of MIIF and the Ghana Infrastructure Investment Fund (GIIF) to streamline the allocation of funds and ensure that royalties are directly contributing to national development. He suggested capping total allocations to these funds at a reasonable amount, with any surplus reverting to the national budget for more equitable distribution.
In his closing remarks, Boakye issued a stark warning, urging that the nation must examine the MIIF’s track record closely, or risk seeing it as an example of “financial banditry” rather than a sovereign wealth fund. “The blessings of natural resources must be spent to improve lives — love your people,” he concluded.
With these concerns in mind, Boakye called on President Mahama’s government to address the misuse of Ghana’s mineral royalties and to put the funds to better use for the nation’s development.
Why President Mahama Should Not Disappoint on MIIF
1.The Mineral Income Investment Fund (MIIF) was created to facilitate the Agyapa Royalty Investments—a concept masterminded by Ken Ofori-Atta and Adu Boahen to sell Ghana’s gold royalties on the London Stock Exchange.…
— Benjamin Boakye (@benboakye) January 22, 2025
