Ashanti RCC Directive: MMDAs Ordered to Issue Stickers Exclusively to Professional, Registered Companies

Introduction

The Ashanti Regional Coordinating Council (RCC) has issued a decisive directive to all Metropolitan, Municipal, and District Assemblies (MMDAs) within Ghana’s Ashanti Region. The order mandates that henceforth, the issuance of operational stickers—a common form of local business licensing and revenue mobilisation—must be restricted solely to companies and entities that are legally registered and hold all requisite certifications. This policy shift, announced by the Ashanti Regional Minister, Dr. Frank Amoakohene, aims to overhaul local revenue collection, combat unauthorised fees, and enforce strict compliance with national and local government regulations. The directive follows investigative journalism highlighting the improper taxation of unlicensed mining operations, signalling a significant crackdown on informality and a push for greater accountability in regional business licensing. This article provides a comprehensive, SEO-optimised analysis of the directive, its origins, its legal framework, and its practical consequences for businesses, local authorities, and the regional economy.

Key Points of the Directive

The communication from the Ashanti RCC outlines several critical and actionable requirements for all MMDAs. These key points form the backbone of the new regulatory approach to sticker issuance and local levies.

Core Mandate: Stickers for Legally Registered Entities Only

The most immediate and central instruction is that branding mobilisation—the process of issuing identification stickers for vehicles, equipment, machinery, and business premises—must be conducted exclusively for entities that can provide verified proof of legal registration. This includes presenting valid trade registration certificates from the Registrar General’s Department, relevant sector-specific licenses (e.g., from the Minerals Commission, Forestry Commission), and any required operational permits. The focus is particularly intense on the mining, quarrying, and sand-winning sectors, which have been identified as high-risk areas for regulatory non-compliance.

Overhaul of Existing Levy By-Laws

All current local government by-laws governing the imposition of fees, levies, and charges must be submitted to the Ashanti RCC for rigorous review and validation. The deadline for this submission is February 13, 2026. This centralised review is designed to nullify any by-laws that are inconsistent with the national Local Government Act or that facilitate arbitrary fee collection. The goal is to create a harmonised, legally sound framework for revenue mobilisation across the entire region.

Strict Adherence to Statutory Processes

The directive emphatically states that any rate-setting or fee imposition by an Assembly must follow the full, prescribed statutory process. This includes public notification, opportunities for objection, and approval by the relevant statutory bodies as outlined in the Local Government Act, 1993 (Act 462). Any bypassing of these steps is now explicitly prohibited under this RCC directive.

Response to Media Investigation

The timing and content of the directive are a direct response to the PleasureNews Hotline documentary titled “A Tax for Galamsey.” The documentary exposed instances where district assemblies were taxing equipment used in illegal mining (galamsey) operations, thereby inadvertently legitimising or profiting from unlawful activity. The RCC’s measures are framed as a corrective action to the issues raised by this investigative piece.

Background: Local Governance and the Galamsey Challenge

To fully grasp the significance of this directive, one must understand the structure of local government in Ghana and the persistent socio-economic challenge of illegal mining, known locally as “galamsey.”

Ghana’s Local Government System and the Role of MMDAs

Ghana’s decentralised governance system is built upon 261 Metropolitan, Municipal, and District Assemblies (MMDAs). These are the primary local government authorities responsible for planning, financing, and executing development projects within their jurisdictions. A critical function of MMDAs is the mobilisation of Internally Generated Funds (IGFs) through the collection of property rates, business levies, market tolls, and various operational fees, including the issuance of stickers for vehicles and business premises. The legal basis for this is found in the Local Government Act, 1993 (Act 462) and subsequent legislative instruments. However, the autonomy of MMDAs in setting rates has sometimes led to inconsistencies, overlapping charges, and, in worst-case scenarios, collusion with illegal operators for short-term revenue gains.

The Galamsey Phenomenon and Its Impacts

“Galamsey” is a portmanteau of “gather them and sell,” referring to the widespread, often illegal practice of small-scale gold mining. While some artisanal mining is licensed, a significant portion operates outside the law, leading to severe environmental degradation—deforestation, polluted water bodies from mercury and cyanide use, and destroyed farmlands. The Ashanti Region, particularly districts like Amansie Central, has been heavily affected. The economic lure of gold has drawn many into the activity, creating complex social and enforcement challenges. The documentary “A Tax for Galamsey” alleged that some assemblies were issuing stickers to galamsey operators, effectively formalising their illegal operations in exchange for fee revenue, a practice that undermines national environmental and mining laws.

Analysis: Implications of the RCC’s Directive

The Ashanti RCC’s directive is not an isolated administrative note; it is a multi-faceted policy intervention with ripple effects across governance, business, and the regional economy.

Enhancing Revenue Transparency and Accountability

By centralising the validation of by-laws and mandating proof of legal registration, the RCC is creating a clearer audit trail for all local revenue. This move is designed to eliminate “under-the-table” fees and multiple, unauthorised levies imposed by individual assembly officials. Businesses will have a single, transparent point of reference for what fees they legally owe. This should, in theory, reduce the cost of doing business and decrease opportunities for corruption at the local level. Strengthening “accountable branding mobilisation” means that sticker issuance becomes a genuine regulatory tool for identifying compliant businesses, not just a revenue-generating free-for-all.

Legal and Regulatory Compliance

The directive explicitly ties local actions to the national legal framework. It reinforces that MMDAs cannot operate in a legal vacuum; their revenue-generating powers are delegated and must be exercised in accordance with Act 462 and relevant sector laws (e.g., the Minerals and Mining Act, 2006). Forcing the submission of by-laws for RCC review is a mechanism to ensure this compliance. This aligns with broader national efforts, such as those by the Ministry of Local Government and Rural Development and the Office of the Special Prosecutor, to sanitise local government finances and ensure that local governance supports, rather than hinders, national development goals.

Impact on Business Operations, Especially in Extractives

The impact on businesses is twofold. For legitimate, professional companies, this directive is a positive step. It levels the playing field by ensuring that competitors—especially those in the extractive industries—cannot operate with a cost advantage gained by avoiding proper registration and taxes. It provides legal certainty. For informal operators and illegal miners, the barrier to operating has been raised. They will no longer be able to obtain official stickers, making their operations more vulnerable to crackdowns. This could force some to formalise, others to operate deeper underground, or exit the market. The short-term disruption in some communities is possible, but the long-term goal is a structured, taxable, and environmentally compliant economic landscape.

Practical Advice for Stakeholders

The success of this directive depends on the actions of three key stakeholder groups. Here is actionable advice for each.

For Businesses and Operators in the Ashanti Region

• Audit Your Documentation: Immediately verify that your company is registered with the Registrar General’s Department and holds all necessary licenses for your specific activity (e.g., mining license, quarry license, sand-winning permit, business operating permit from the assembly).
• Engage Proactively with Your MMDA: Contact your local Municipal or District Assembly to understand their revised sticker application process. Inquire about the status of their by-laws and the specific documents now required.
• Beware of Unauthorised Agents: Be vigilant against individuals promising to secure stickers outside the official, documented process. Report any such solicitation to the assembly’s security or the RCC.
• Formalise If You Are Informal: If you are operating without registration, use this period to begin the formalisation process. Seek advice from the Registrar General’s Department and the relevant sector regulator (Minerals Commission, etc.).

For MMDAs and Local Officials

• Conduct an Internal Audit: Review all existing fee and sticker-related by-laws, policies, and practices. Identify and suspend any that conflict with the RCC directive or national law.
• Compile and Submit By-Laws: Prepare a complete dossier of all relevant by-laws for submission to the Ashanti RCC by the February 13, 2026 deadline. Be prepared to justify their legal basis.
• Train Frontline Staff: Educate revenue collectors, planning officers, and security personnel on the new, strict documentation requirements. Emphasise that sticker issuance is a compliance tool, not a discretionary revenue source.
• Establish a Verification Protocol: Create a clear, standardised procedure for verifying the authenticity of trade registration certificates and sector licenses. This may involve cross-checking with national databases.
• Improve Public Communication: Proactively inform the business community about the changes through public announcements, assembly websites, and durbars. Transparency will reduce confusion and resistance.

For Community Members and Watchdog Groups

• Monitor Local Assemblies: Pay attention to the sticker issuance process in your area. Note if unregistered entities are still receiving stickers or if new, unauthorised fees appear.
• Report Violations: Document and report any non-compliance to the higher authorities—the MMDA’s Chief Executive, the Ashanti RCC, or relevant anti-corruption agencies. Provide specific details: names, locations, dates, and evidence if possible.
• Support Legitimate Business: Patronise businesses that display valid, legally obtained stickers. This creates a market incentive for compliance and helps the public identify formally operating enterprises.
• Advocate for Clarity: Engage with assembly members to ensure the revised by-laws, once validated, are clearly published and accessible to all citizens.

Frequently Asked Questions (FAQ)

Q1: What exactly is a “sticker” in this context?
A: It refers to the operational permit stickers or decals issued by MMDAs to be displayed on business vehicles (like tipper trucks, excavators), heavy equipment, and business premises. It serves as proof that the entity has paid the required local levies and is approved to operate within that assembly’s jurisdiction.

Q2: Does this apply to all businesses, or just mining and sand