The Center for Democratic Development (CDD-Ghana) has reiterated its calls for an increase in the mineral royalties allocated to Ghana’s mining districts. This appeal highlights the ongoing struggle faced by communities in resource-rich areas that continue to lag in development despite their contributions to the nation’s wealth.
At a recent stakeholders’ meeting in Obuasi to review the CDD report on the Mining Districts Development Scorecard, Mr. Emmanuel Yeboah, a Research Analyst with CDD-Ghana, emphasized the inadequacy of the current 20 percent mineral royalties allocated to mining communities. He pointed out that this insufficient percentage, coupled with delays in fund disbursement, has significantly hindered meaningful developmental projects in these areas.
“It’s unacceptable that the districts producing these valuable resources remain underdeveloped. The woefully inadequate royalties have perpetuated a development gap that needs urgent addressing.”
Mr. Emmanuel Yeboah, a Research Analyst with CDD-Ghana
Mr. Yeboah called on the Government, particularly the Ministry of Lands and Natural Resources, the Minerals Commission, the Ghana Revenue Authority, and other key stakeholders to consider increasing the royalties allocated to these districts. This increase, he argued, is necessary to bridge the developmental gap and ensure that mining communities benefit adequately from the resources they produce.
The latest 2023 Mining District Development Scorecard (MDDS) ranked Obuasi Municipal sixth with a score of 35.4 out of 100 points, below the MDDS overall score of 38.4 points. This ranking indicates severe weaknesses in governance practices related to the management and utilization of mineral royalties in the municipality.
The MDDS, an initiative supported by the Ford Foundation, tracks the usage of mineral revenue in mining districts across Ghana. Its goal is to promote transparency, accountability, and improved social and human development outcomes. The project also aims to empower and strengthen community participation in natural resource governance at the sub-national level.
Obuasi’s score was only better than Asutifi North District and Prestea-Huni Valley Municipal, suggesting significant areas for improvement.
Mr. Yeboah detailed that Obuasi Municipal scored poorly in two major MDDS components: local management committee effectiveness and mineral development fund utilization efficiency. Despite scoring ‘very good’ in 10 out of 12 subcomponents assessed using administrative data, the overall performance was hindered by weak fiscal transparency.
“We identified weak fiscal transparency as a major challenge,” Mr. Yeboah noted. “This is something that needs to be addressed to improve the overall development of the district.”
Calls for Increased Awareness and Accountability
Dr. Amina Achiaa Asiedu Amoah, Chairperson of the Local Mining Committee of the Obuasi Municipality also assured stakeholders that the committee would intensify its awareness campaigns to inform the public about its activities. She echoed the call for an increase in mineral royalties, emphasizing that this would expedite development and support the Local Mining Committee’s public outreach programs.
Moreover, Mr. Ali Tanti Robert, Executive Director of the Center for Social Impact Studies, urged the Obuasi Municipal Assembly to enhance its public engagement efforts.
“It is crucial for the assembly to render accounts to the public on the utilization of mineral royalties,” Mr. Ali Tanti Robert stated, emphasizing the importance of transparency and public participation in governance.
The ongoing discourse surrounding mineral royalties in Ghana underscores a critical need for policy reform. As the CDD-Ghana continues to advocate for increased allocations, it is imperative that stakeholders consider the long-term benefits of equitable resource distribution. Ensuring that mining communities receive a fair share of the wealth they generate will not only bridge development gaps but also foster a sense of inclusivity and fairness within these regions.
The stakeholders’ meeting in Obuasi has highlighted both the challenges and opportunities within the mining sector. It is now up to the government and relevant authorities to act on these insights, increasing mineral royalties to foster sustainable development in Ghana’s mining communities.
