Mahama’s 24-hour economy and the economic reset

Author: Dr. Bernard L. TETTEH-DUMANYA

John Mahama’s 2024 Manifesto, especially the “24-Hour Economic Policy”, represents a strategic shift aimed at addressing Ghana’s economic problems through targeted interventions.

To fully appreciate the potential impact of this policy, it is necessary to examine the context of Ghana’s economic trajectory from 2016 to 2024, as well as similar initiatives and their outcomes. I pray that those who still do not understand will read this carefully to improve their understanding of the 24-hour policy.

The New Patriotic Party (NPP) has expressed scepticism about the NDC’s proposed 24-hour economy policy, with both Dr Mahamudu Bawumia and Dr Matthew Opoku Prempeh (Napo) questioning its feasibility and impact. Napo in particular likened the policy to turning Ghana into a “disco”, suggesting it may be unrealistic in the face of current economic challenges.

However, examining Ghana’s economic landscape over the past eight years provides context for understanding the potential benefits of a 24-hour economy. Since the 2016 elections, Ghana has struggled with economic headwinds, including high public debt, inflation, and unemployment.

The Akufo-Addo administration introduced initiatives such as “One District, One Factory” to drive industrialization and reduce unemployment, but these efforts have been plagued by problems such as inadequate infrastructure and inconsistent implementation. The 2020 global pandemic further strained the economy, causing disruptions to supply chains and falling tourism and export revenues.

Despite stabilization efforts, GDP growth has slowed. Implementing a 24-hour economy could revitalize these policies by increasing economic activity and job creation, generating additional revenue for initiatives such as Free Senior High School (SHS) education, and optimizing infrastructure for new factories. By extending operating hours, the policies could increase logistical efficiency and financial stability, supporting broader economic development and public welfare goals.

The reluctance of the ruling NPP to fully embrace the concept of the 24-hour economy raises doubts about their understanding of its potential benefits. I encourage the NDC to translate the 24-hour economy policy into different languages ​​and promote it widely to ensure its benefits are understood. The proposed policy of the Mahama administration aims to rejuvenate Ghana’s export sector by enabling continuous operations in time-sensitive industries, key to processing and logistics.

For example, the Accelerated Export Development Council (AEDC) will play a key role in boosting export activity. Meanwhile, the NPP’s Planting for Food and Jobs program, launched in 2017, has faced challenges such as post-harvest losses and inadequate processing facilities, limiting its impact on export growth.

A 24-hour economy policy could address these issues by ensuring continuity of production, processing and export operations, thereby shortening lead times and ensuring that perishable goods such as seafood reach international markets in better condition. If implemented effectively, this policy could increase Ghana’s global competitiveness, increase foreign exchange earnings and create jobs in the export sector.

The need to reset Ghana’s economy requires a comprehensive approach that includes diversifying economic sectors to reduce dependence on a few industries, investing in infrastructure to support business activities, and improving education and skills development to align the workforce with market needs. Promoting private sector growth through supportive policies and addressing governance issues to combat corruption is critical to building investor confidence.

In addition, increasing export competitiveness, expanding the social safety net and supporting sustainable development are essential for long-term stability. Harnessing technology and innovation can increase productivity and create new opportunities, collectively moving Ghana towards sustainable economic growth and resilience. As a financial economist with 29 years of experience, I strongly believe that the 24-hour economy policy can be a game-changer for the Ghanaian economy.

By enabling businesses to operate around the clock, this policy has the potential to significantly increase productivity and create new employment opportunities. Implementing this policy would require a strong framework to support businesses in the transition to extended working hours, including the necessary infrastructure and services.

In addition, changes to labor laws and regulations would be necessary to protect workers’ rights while also adapting to new schedules. For example, extending working hours could boost economic activity, attract domestic and foreign investment, and increase industrial production. This increased activity would generate additional tax revenues that could be reinvested in key sectors such as infrastructure, health care, and education, strengthening the overall economic framework.

Moreover, the policy could improve the efficiency of transportation and retail, optimize resource utilization, and support a more resilient, diversified economy. Given these potential benefits, it is puzzling why NPP communicators have difficulty supporting the policy. Ultimately, if done well, the 24-hour economy could revitalize Ghana’s economic landscape, fueling long-term growth through increased consumer spending and a vibrant service sector.

>>>The author is a seasoned financial economist and consultant with an impressive career spanning 29 years in the academic, corporate and agribusiness sectors. His extensive career includes key roles in respected institutions such as UBA Ghana, SIC Financial Services, Empretec Ghana and Swiss International Finance Group, reflecting his deep understanding of global finance.

Known as a pioneer in risk management, compliance and corporate strategy, Dr. Tetteh-Dumanya has made significant contributions to the Ghanaian financial landscape. He has been instrumental in spearheading venture capital, business/financial restructuring and fundraising initiatives, thereby playing a key role in the development and growth of many entities.

Driven by a passionate commitment to capacity building, Dr. Tetteh-Dumanya has provided advisory services to numerous local and international organizations, notably GIZ, AGRA, SNV, DANIDA and USAID. His expertise in finance and business is multi-faceted, demonstrated by his adept navigation of complex challenges and commitment to driving sustainable growth in every endeavor. For inquiries, Dr. Tetteh-Dumanya can be reached at: (email protected)