8 hours ago
Ghana: Can a 24-hour economy change a nation?
Accra, Ghana – Since taking office six months ago, Ghanaian President John Mahama has placed a firm focus on reviving the country's economy – a key promise of his campaign.
The new leader is seeking to shift the West African nation away from relying solely on its traditional sectors to establishing a more diversified economy. To this end, Mahama has launched a so-called 24-hour economy designed not only to create job opportunities around the clock but also to transform Ghana from an imports-based economy to self-sufficiency.
'This policy is made for Ghana and the future,' said Mahama. 'The 24-Hour Plus Programme will be the catalyst for Ghana's economic growth, and we are sure it will make Ghana prosper.'
Under the plan, various industries will operate in three eight-hour shifts daily, with public and private sectors working together to keep the economy running day and night. The initiative chiefly targets existing key sectors in the country such as agriculture, manufacturing and essential services, but could be expanded to other areas in the long term.
But as promising as it may seem, questions remain about the feasibility of Mahama's pet project.
A country that never sleeps?
Ghana's capital, Accra, can't compare to New York, Dubai or Tokyo when it comes to 24-hour amenities. In the African context, few cities run nonstop services, although Accra and cities in Nigeria, Democratic Republic of Congo, South Africa and Kenya boast vibrant informal nighttime economies.
Mahama's plan is about far more than creating cities where shops, restaurants and bars can operate day and night: His vision is to boost Ghana's economic output by tripling the hours that vital industries and sectors operate – from an average of eight hours per day to 24 hours.
By the end of the decade, this ambitious policy could create 1.7mn new jobs across the nation, which would mean a 5% drop in unemployment.
Economist Daniel Amateye Anim believes that bridging the gap from the theoretical idea behind the new policy to its actual application is where things could potentially go awry.
'About US$4bn to drive this 24-hour policy is needed,' he told DW. The expense has to be seen in the context of Ghana already owing US$3bn to the International Monetary Fund after defaulting repeatedly on some of its existing debt in recent years.
Implementing an ambitious vision
Ghana's approach as a government-backed policy is unique on the African continent, but faces multiple hurdles in its implementation.
'On paper, the programme sounds or appears innovative and progressive, with a propensity of transforming Ghana's economy. So it makes theoretical sense … (because) it's a programme that seeks to create jobs, bring about productivity, lift up from poverty,' said Amateye.
'As it stands now, we have so many graduates who are unemployed. And so, a programme that would ensure that people are employed and jobs are created, will also increase our GDP.'
But in practical terms, he said, funding will be a limiting factor. 'Who exactly is the private sector, who you are expecting (to fund the program)? The internal private sectors do not have the financial muscle … to drive such an innovative programme.'
According to Amateye, even if Ghana's private sector were able to fund a major transformation of the economy, it would still take time for private enterprises to fully buy into Mahama's ambitious idea.
'(Each enterprise) would have to do a cost-benefit analysis first, and that takes time.'
Amateye suggested that the onus should be on the government to cough up the funds first and thus 'dictate the pace' before private enterprises across Ghana can actually join Mahama's 24-hour economy revolution.
DW
