Ghana is at a key point in its economic journey, with the ambitious 24-hour economy agenda proposed by presenting a transformative vision for progress.
This strategy intends to promote continuous operations in critical sectors such as manufacturing, agriculture, services and retail to increase productivity, create jobs, and strengthen economic resilience.
However, the success of this strategy is dependent on resolving the underlying structural flaws in Ghana's economy.
Decades of reliance on primary commodities, along with fiscal mismanagement, infrastructure shortfalls and rising inflation have rendered the economy vulnerable.
To fully realise the benefits of a 24-hour economy, the government must prioritise the fixing of the fundamental concerns such as fiscal discipline, energy reliability, infrastructure development, digital transformation and workforce regulation.
This article investigates why these reforms are necessary and how they can help Ghana's 24-hour economy goal move forward.
Fiscal discipline
Ghana's economy has suffered major issues due to a lack of fiscal discipline, wasteful state spending and poor revenue collection.
The World Bank emphasises the importance of a strong fiscal system by adopting fiscal rules, improving expenditure controls and promoting transparency through timely fiscal statistics and an independent Fiscal Council.
To sustain a 24-hour economy, the government must boost domestic income mobilisation through bold tax policy changes and better compliance measures.
For example, implementing the Medium-Term Revenue Strategy (2024-2027) could provide resources for long-term growth. Additionally, reducing corruption, which costs Ghana 30 per cent of its GDP each year.
Energy reliability and infrastructure
A 24-hour economy necessitates a consistent energy supply to support continuous operations in manufacturing, retail, and services.
However, Ghana experiences frequent power outages, called locally as "dumsor," which interrupts businesses and discourage investors.
Inefficiencies in the energy industry, such as losses from state-owned firms and inadequate investment in renewable energy, have put pressure on the economy.
The government must prioritise investments in energy infrastructure, such as increasing grid capacity and boosting renewable energy sources like solar, which has already helped agricultural productivity through initiatives such as USAID's solar-powered irrigation systems.
Public-private partnerships can speed up these investments, ensuring that firms can always run smoothly.
Furthermore, increasing the Energy Commission's control and enacting policies to reduce energy sector losses will lay the groundwork for a stable 24-hour economy.
Transportation and digital infrastructure
A 24-hour economy requires efficient transportation and digital infrastructure to allow for the continuous movement of products, services and information.
Ghana's transport networks, particularly in rural areas, suffer from structural flaws that raise business costs and diminish efficiency.
For example, the lack of 24-hour public transport restricts access for night-shift workers and consumers, stifling economic activity.
Similarly, while digitalisation has advanced, with a 32 per cent increase in mobile money transactions expected by 2023, gaps in cybersecurity and broadband availability persist.
To help night-shift workers and improve safety, the government should invest in 24-hour public transport services like buses and trains.
Expanding digital infrastructure, such as high-speed internet and secure banking platforms, is equally important.
Workforce regulation and labor policies
A 24-hour economy necessitates a flexible and protected workforce capable of working shifts, including night shifts.
Ghana's informal sector, which accounts for more than 80% of employment, is not integrated into regular labour frameworks, restricting its contribution to a 24-hour economy.
The Ghana Labour Act (Act 651) governs working conditions, although it requires modifications to allow night shifts, flexible schedules, and fair wage structures for prolonged hours.
The government should update labour regulations to provide worker safeguards, such as overtime pay and safe working conditions, while also encouraging firms to implement shift schedules.
Security and investor confidence
Safety is a significant problem for enterprises that operate at night because it undermines investor trust, which is already strained due to Ghana's economic challenges and reliance on main commodities such as gold, cocoa, and oil.
The government's efforts to attract foreign direct investment (FDI) through the Ghana Investment Promotion Centre (GIPC) Act are promising, but they will require a stable environment to succeed.
Improved security infrastructure, such as additional patrols, monitoring systems, and public-private partnerships, can reduce night time dangers.
Furthermore, completing external debt restructuring and complying to the IMF's $3 billion Extended Credit Facility program will restore macroeconomic stability, increasing Ghana's appeal to investors.
Conclusion
The 24-hour economy agenda has the potential to significantly improve Ghana's economic landscape by increasing productivity, creating jobs, and building resilience.
However, its success is dependent on addressing Ghana's fundamental economic weaknesses.
The government can establish a climate conducive to round-the-clock operations by increasing budgetary discipline, assuring energy reliability, boosting transportation and digital infrastructure, changing labour rules, and enhancing security.
These reforms necessitate strategic investments, policy innovation, and a dedication to openness and inclusion.
The writer is a Lecturer/SME Industry Coach, Coordinator (MBA Impact Entrepreneurship and Innovation) at the University of Professional Studies Accra
ayiku.andrews@upsamail.edu.gh
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