Chief Executives of Mining Regions Call for Increased Allocation to Minerals Development Fund
Mining communities in Ghana are calling on the government to increase the percentage of mineral royalties allocated to the Minerals Development Fund (MDF) to at least 30 per cent. Currently, the statutory fund sits at 20 per cent.
Metropolitan, Municipal and District Chief Executives (MMCDEs) from various regions expressed the need for more funding to undertake crucial development projects that would benefit their people. MMCDEs from Obuasi Municipal Assembly, Adansi North, Amansie Central, Obuasi East, Upper Denkyira West, and Asutifi North, visited four districts to ascertain how Local Management Committees (LMCs) used mineral royalties given to them for development projects in their communities.
The MMCDEs noted that although proceeds from the MDF had contributed significantly to improve infrastructure in their areas, more needed to be done to improve the living standards of the people. The LMCs had undertaken several development projects aimed at improving education, healthcare, water and sanitation, business development, and rural electrification. Some of the projects included constructing classroom blocks, teachers’ bungalows, and purchasing desks to establish information and communication technology (ICT) centres. Hospitals, CHPS compounds, nurses’ quarters, and medical equipment were also constructed or installed in many districts.
In the Asutifi North District, for instance, the assembly had used some MDF proceeds to provide 226 boreholes and small water systems, thereby improving water coverage from 41 per cent in 2017 to 89 per cent currently. The MMDAs had also constructed several markets to open up the local economy while others extended electricity coverage. However, resource constraints had caused some projects to stall, while others were yet to be started.
In a nutshell, mining communities in Ghana require more funding to carry out crucial development projects that will positively impact their people. MMCDEs from different regions are calling on the government to increase the percentage of mineral royalties allocated to the MDF from 20 per cent to at least 30 per cent. They note that although the MDF has contributed significantly to improving infrastructure in their areas, more needs to be done to improve the living standards of the people. The LMCs have undertaken several projects aimed at improving education, healthcare, water and sanitation, business development, and rural electrification, but resource constraints have caused some projects to stall.