Mineral royalties used for funeral donations, canopies hindering development in mining communities — Dr. Manteaw
Policy analyst and Co-Chair of the Ghana Extractive Industries Transparency Initiative (GHEITI), Dr Emmanuel Steve Asare Manteaw, has raised concerns over the persistent misuse of mineral royalty revenues by district assemblies, warning that the practice continues to undermine development in Ghana's mining communities.
Speaking to Citi News on the sidelines of a Natural Resource Governance Institute (NRGI) Media and Civil Society Capacity Building Workshop on addressing corruption risks in Ghana's lithium value chain, Dr Manteaw said evidence from successive GHEITI reports shows that funds intended to transform mining communities are frequently diverted to recurrent expenditures with little lasting impact.
“The misuse of district shares of mineral royalties largely accounts for the reason we have not been able to transform our mining communities to the level we would have expected over the years,” he said.
Ghana's extractive sector generates substantial revenue through royalties paid by mining companies, with a portion allocated to district assemblies and local authorities to support development in communities affected by mining operations.
However, Dr Manteaw noted that many assemblies have failed to channel the funds into sustainable projects capable of improving livelihoods and creating long-term economic benefits.
“We find through our GHEITI reports that the bulk of the community share of mineral royalties is expended on recurrent items. In fact, there have been instances where these royalties have been spent on funeral donations,” he disclosed.
According to him, some assemblies have also used royalty revenues to fund the hiring of chairs and canopies for public events, expenditures he described as inappropriate given the finite nature of mineral resources.
“There have been several instances where these revenues have been spent on hiring chairs and canopies for public events. When you treat revenues from a depleted and depletable resource like minerals in this manner, there is no way you can transform host communities,” he stressed.
Dr Manteaw called for the establishment of clear and enforceable guidelines governing the use of mineral royalties, arguing that a greater proportion of the funds should be invested in capital projects capable of delivering long-term benefits.
“We need guidelines that will require these revenues to be spent more on capital expenditures and development projects that leave a legacy for communities, both for current and future generations,” he said.
His remarks come amid growing scrutiny of natural resource governance in Ghana and renewed efforts to strengthen transparency, accountability and anti-corruption measures within the extractive sector, particularly as the country prepares to develop its emerging lithium industry.
Participants at the NRGI workshop also underscored the importance of prudent management of extractive revenues, stressing that communities hosting mining operations must experience tangible improvements in their living conditions if the country's natural resource wealth is to translate into meaningful local development.
They maintained that effective oversight and responsible investment of mineral royalties will be critical to ensuring that resource-rich communities benefit sustainably from Ghana's extractive activities.