Volatile Extractives Revenues Threaten Kumasi-Accra Expressway Project— PIAC Urges Diversification and Media Accountability

Ghana’s heavy reliance on extractive sector revenues to fund major national infrastructure projects could expose the country to significant risks, as global commodity price volatility continues to threaten revenue stability. The Executive Secretary of the Public Interest and Accountability Committee (PIAC), Mr. Isaac Dwamena, has cautioned that overdependence on petroleum and mineral revenues could delay critical projects if market conditions turn unfavorable.

Speaking at a capacity-building training for journalists organized by Africa Extractive Media Fellowship,Mr. Dwamena stressed that fluctuations in global oil and mineral prices have historically affected government inflows, making it risky to tie major infrastructure financing solely to extractive revenues.

According to insights from the PIAC 2025 Report, petroleum receipts have shown periodic instability, with annual inflows varying in response to price shocks and production changes. This trend, he noted, underscores the need for prudent financial planning and diversification.

Data from the Ghana Extractive Industries Transparency Initiative (GHEITI) 2023 Report further reveals that while the extractive sector remains a major contributor to government revenue, its share is highly sensitive to external market forces. The report highlights that mineral revenues, particularly from gold, have been relatively strong but still subject to international price fluctuations, reinforcing concerns about sustainability.

Despite these challenges, Mr. Dwamena commended the government for adopting a more focused approach in the utilization of extractive revenues. He praised the decision not to spread funds thinly across multiple projects, but rather to channel them into high-impact infrastructure such as the Kumasi-Accra Expressway.

According to him, this approach enhances value for money and ensures visible national development outcomes.

However, he emphasized that beyond infrastructure spending, there is a critical need to diversify investments of extractive revenues. He cited the strategic investment of 30 million dollars into the Kotoka International Airport expansion, which has reportedly generated over 17 million dollars in returns over time, as a model worth replicating. Such investments, he explained, can provide sustainable income streams to cushion the economy against commodity shocks.

Mr. Dwamena also raised concerns about the enforcement of existing petroleum revenue management laws, noting instances of misapplication and weak accountability mechanisms. He called for stricter adherence to the legal framework governing extractive revenues to prevent leakages and ensure that funds are used for their intended purposes.

Addressing journalists at the training, he urged media practitioners to strengthen their capacity in extractive sector reporting. He charged the media to take a more proactive role in demanding transparency and accountability in the management of mineral and petroleum revenues. According to him, an informed and empowered media is essential in safeguarding public interest and ensuring that Ghana derives maximum benefit from its natural resources.

As Ghana continues to depend on extractive revenues for development financing, stakeholders are being reminded that sustainability lies not only in efficient utilization but also in strategic diversification and robust oversight.

Story by Robert Anokye Gyamfi, ESG Strategist and Extractive Journalist.