The Africa Centre for Energy and Environmental Sustainability (ACEES) has raised concerns over persistent shortfalls and delays in the transfer of mineral revenues to mining districts, warning that the situation is limiting development opportunities in communities that host mining activities.
According to ACEES, incomplete and delayed disbursement of mineral revenues continues to prevent local authorities from investing adequately in essential infrastructure and social services, denying mining communities the full benefits of Ghana’s natural resource wealth.
The concerns were highlighted during the presentation of a research report titled:
“Assessing Compliance, Transparency and Accountability of Mineral Revenue Transfers to Subnational Authorities in Ghana (2019–2023): The Case of Obuasi East Municipal.”
The study examined the governance, allocation and utilisation of mineral revenues at the local government level and identified significant weaknesses in Ghana’s mineral revenue transfer system.
Obuasi East Received Only 31.7% of Mineral Royalties Due
Presenting the findings, researchers revealed that Obuasi East Municipal was entitled to receive GH¢1,554,685 in mineral royalties in 2023 but received only GH¢492,636.
This means the municipality received just 31.7 per cent of the amount allocated, leaving a shortfall of more than GH¢1 million.
ACEES noted that the unpaid funds could have supported critical development projects, including the construction of schools, roads, healthcare facilities and other public infrastructure needed to improve the lives of residents.
Systemic Challenges Affecting Revenue Transfers
The research identified several challenges affecting the effective management of mineral revenues, including recurring delays in statutory transfers, discrepancies between mining company declarations and municipal records, and weaknesses in reconciliation processes.
According to ACEES, these challenges undermine transparency, accountability and the ability of local authorities to plan and implement development projects effectively.
The organisation stressed that mining communities should not only bear the environmental and social impacts associated with mineral extraction but must also receive timely and adequate financial benefits from resources generated within their jurisdictions.
Calls for Reforms and Stronger Oversight
ACEES called on key institutions, including the Ministry of Finance, Office of the Administrator of Stool Lands (OASL), Minerals Development Fund (MDF) and other relevant state agencies, to address the underlying causes of revenue shortfalls and ensure that all statutory mineral transfers are paid fully and on schedule.
The organisation also urged the Auditor-General to strengthen oversight by recovering outstanding balances identified through reconciliation exercises, enforcing sanctions where necessary and promoting regular independent audits.
ACEES further recommended greater public disclosure of mineral revenue transfers to enhance transparency and allow citizens in mining communities to track the utilisation of funds meant for their development.
Supporting Fair Benefits for Mining Communities
The research was conducted by ACEES with support from the Building Resilience Against Climate and Environmental Shocks (BRACE) Project, funded by the European Union and implemented by A Rocha Ghana, NDF and WACAM.
ACEES said the findings would contribute to ongoing efforts aimed at improving transparency, accountability and equitable distribution of mineral revenues across Ghana.
The organisation emphasised that strengthening the mineral revenue transfer system is critical to ensuring that communities hosting mining operations receive their fair share of the economic benefits generated from Ghana’s extractive sector.