Mahama’s 24-hour economy and economic reset

John Mahama’s 2024 manifesto, particularly the ‘24-Hour Economic Policy’, represents a strategic pivot aimed at addressing Ghana’s economic challenges through targeted interventions.

To fully appreciate the potential impact of this policy, it is essential to analyze the context of Ghana’s economic trajectory from 2016 to 2024, along with similar initiatives and their outcomes. I pray that those who still do not understand will read this thoroughly to upgrade their understanding of the 24-hour  policy.

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

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

The Akufo-Addo administration introduced initiatives like ‘One District, One Factory’ to stimulate industrialization and reduce joblessness, but these efforts encountered issues such as inadequate infrastructure and inconsistent implementation. The global pandemic in 2020 further strained the economy, with disruptions in supply chains and declines in tourism and export revenues.

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

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

For instance, the Accelerated Export Development Council (AEDC) will play a key role in enhancing export activities. In contrast, the NPP’s ‘Planting for Food and Jobs’ programme, launched in 2017, faced challenges such as post-harvest losses and inadequate processing facilities, limiting its impact on export growth.

The 24-hour economy policy could address these issues by ensuring continuous production, processing, and export operations, thereby reducing lead times and ensuring perishable goods like fruits and seafood reach international markets in better condition. If effectively implemented, this policy could boost Ghana’s global competitiveness, increase foreign exchange earnings, and create jobs within the export sector.

The need to reset Ghana’s economy requires a comprehensive approach that includes diversifying economic sectors to reduce reliance on a few industries, investing in infrastructure to support business operations, and enhancing 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 are crucial for building investor confidence.

Additionally, boosting export competitiveness, expanding social safety nets, and fostering sustainable development are essential for long-term stability. Leveraging technology and innovation can drive efficiencies and create new opportunities, collectively driving Ghana towards sustained economic growth and resilience. As a financial economist with 29 years of experience, I firmly believe that the 24-hour economy policy could be a game-changer for the Ghanaian economy.

By enabling businesses to operate around the clock, the policy has the potential to significantly boost productivity and create new job opportunities. Implementing this policy would require a robust framework to support businesses during the transition to extended hours, including necessary infrastructure and services.

Additionally, adjustments to labor laws and regulations would be needed to protect workers’ rights while accommodating new schedules. For example, extending business hours could stimulate economic activity, attract both domestic and foreign investment, and enhance industrial output. This increased activity would generate additional tax revenue that could be reinvested in critical sectors such as infrastructure, healthcare, and education, strengthening the overall economic framework.

Moreover, the policy could improve efficiency in transportation and retail, optimize resource use, and foster a more resilient, diversified economy. Given these potential benefits, it is puzzling why NPP communicators are struggling to support the policy. Ultimately, a well-executed 24-hour economy could revitalize Ghana’s economic landscape, driving long-term growth through increased consumer spending and a vibrant service sector.

>>>the writer is a seasoned Financial Economist & Consultant with an illustrious career spanning 29 years across academic, corporate, and agribusiness sectors. His extensive professional journey includes pivotal roles at esteemed institutions such as UBA Ghana, SIC Financial Services, Empretec Ghana, and the Swiss International Finance Group, reflecting his profound understanding of global finance.

Renowned 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 initiatives in Venture Capital, business/financial reengineering, and fundraising, thereby playing a pivotal role in the growth and development of numerous entities.

Driven by a fervent dedication to capacity development, Dr. Tetteh-Dumanya has offered consultancy services to a diverse array of local and multinational organizations notably GIZ, AGRA, SNV, DANIDA, and USAID among others. His expertise in financial and business domains is multifaceted, showcased through his adept navigation of complex challenges and his commitment to driving sustainable growth in every endeavor. For inquiries, Dr.  Tetteh-Dumanya can be reached at: mafioba@yahoo.com