2025 budget: Financial analyst warns against collapsing MIIF

The 2025 Budget proposes amending Ghana’s Minerals Income Investment Fund (MIIF) Act to transfer 80% of mineral royalties to the Consolidated Fund for infrastructure. This undermines MIIF’s role as a sovereign wealth fund (SWF) meant to generate long-term financial returns.

The move risks depleting Ghana’s mineral wealth without ensuring future stability, mirroring economic missteps like the Netherlands’ Dutch Disease. In contrast, Norway and Bahrain have successfully used SWFs for sustainable growth.

Redirecting MIIF’s funds weakens its ability to invest in mining assets and economic diversification. Instead of direct spending, Ghana should adopt a balanced approach, investing in high-yield assets, issuing resource-backed bonds, and supporting strategic infrastructure.

To secure long-term financial stability, Ghana must preserve MIIF as an SWF. Do not kill MIIF.