In Ghana, could a non-stop business culture transform the nation?
Ghana, Africa's 10th strongest economy, has long struggled with unemployment, poverty, and food insecurity. In a bid to address these challenges, President John Mahama has launched a bold 24-hour economy policy. The aim is to create job opportunities around the clock and transform Ghana from an imports-based economy to self-sufficiency.
The policy involves various industries operating in three eight-hour shifts daily, with public and private sectors working together. However, economist Daniel Anim Amarteye, an advocate for the policy, stresses that it should not be seen as a sole game changer but rather part of a broader strategy for improving Ghana's economy.
To kickstart the program, Amarteye suggests that the onus should be on the government to provide the initial funding. This would incentivize private sector buy-in over time. The government has already committed to building the governance capacity of public institutions to operate competitively and efficiently within the 24-hour economy framework.
The initiative primarily targets existing key sectors such as agriculture, manufacturing, and essential services but could be expanded to other areas in the long-term. Private enterprises would need to do a cost-benefit analysis before fully committing, a process that could take time.
One potential challenge for implementing Ghana's 24-hour economy policy is underdeveloped infrastructure, such as poor roads, dilapidated markets, and inadequate storage facilities. The government has expressed a commitment to addressing these issues, with plans to build the Volta Economic Corridor and agroecological parks.
Another challenge is labor shortages and workforce transformation demands, requiring employers to adapt to new work schedules and conditions, including safe and comfortable work environments at night for sectors like construction and real estate. To address this, effective stakeholder engagement is proposed, involving government, employers, labor unions, and private sector actors to align efforts and address sector-specific obstacles early.
Funding constraints are another concern, especially limited financial capacity of the local private sector to drive this ambitious program. To overcome this, the government is expected to provide initial funding and leadership.
Weak inter-ministerial coordination and political will could also pose a challenge, potentially creating legal, labor, and energy policy instability, deterring private sector investment and causing delays or failures in implementation. To mitigate this, a phased, sector-specific approach to implementation with realistic timelines and deep investments in infrastructure, people, and policy enforcement is proposed.
The risk of prioritizing quick-win foreign investments over local capacity building is another concern. To address this, commitment to local capacity building is necessary, such as delivering affordable credit schemes at promising rates to empower local entrepreneurs.
Lastly, the need for measurable benchmarks and strategic processes to move beyond rhetoric and ensure quality sustainable outcomes is crucial. Establishing concrete measurable benchmarks will guide policy execution and avoid the risk of the policy becoming ineffective due to lack of accountability.
If successfully implemented, Ghana's 24-hour economy policy could create 1.7 million new jobs across the country by the end of the decade, resulting in a 5% drop in unemployment. However, its success hinges critically on durable political commitment, comprehensive infrastructure development, and collaborative multi-stakeholder implementation efforts.
- The 24-hour economy policy in Ghana, aiming to create job opportunities and transform their economy, involves various industries operating in three shifts daily, with a combination of public and private sectors' efforts.
- To address infrastructure issues and ensure smooth implementation, the government plans to build the Volta Economic Corridor and agroecological parks, and engage effectively with various stakeholders like government, employers, labor unions, and private sector actors.
- For the policy to succeed, there is a need for measurable benchmarks, strategic processes, and a strong commitment to local capacity building, such as affordable credit schemes, to empower local entrepreneurs and avoid prioritizing quick-win foreign investments over local development.
