Market Update: Prioritizing industry in Mahama’s 24-hour economy proposal – Full Analysis

By Stephen Kwaku DARKO

President John Dramani Mahama’s proposal for a 24-hour economy has sparked an important national debate about Ghana’s economic future during and after the 2024 elections. A 24-hour economy is an economic system where businesses and services operate continuously without interruption, involving sectors like transportation, healthcare, hospitality, and manufacturing.

At the national level, it reflects an environment supported by infrastructure, labor laws, and policies that promote round-the-clock activities, aiming to boost productivity, employment, and service access (Roberts & Eldridge, 2009; UN-Habitat, 2013).

The idea of an economy that operates around the clock is both ambitious and timely, especially as the country aims to recover from fiscal setbacks, lower unemployment, and improve its position in the global market. While this proposal has great potential for job creation, productivity improvement, and inclusive growth, its long-term success will largely depend on its implementation and the sectors that are prioritized. For Ghana’s 24-hour economy to genuinely drive sustainable growth and change, it must focus on industrial development instead of relying solely on the service sector.

The service sector, which includes retail, hospitality, transportation, education, and financial services, already plays a major role in Ghana’s economy, especially in urban areas like Accra, Kumasi, and Takoradi. Many of these businesses already operate with extended or flexible schedules. Expanding service operations to a 24-hour model could create some additional jobs and offer consumers more convenience. However, while this growth may improve access to goods and services, it is unlikely to overcome the structural limitations of Ghana’s economy.

Jobs in the service sector, particularly in retail, food delivery, ride-hailing, and informal trading, tend to be low-wage, temporary, and lack benefits like health coverage or job security. These positions often require minimal skills, offer little chance for advancement, and contribute relatively little to gross domestic product (GDP) compared to value-added industries. Moreover, relying too much on service-sector growth without investing in production can lead to negative outcomes, such as worsening urban sprawl, increased strain on energy resources, higher rates of labor exploitation, and deepening inequalities in the informal economy.

In contrast, focusing on industry in a 24-hour economy could meaningfully reshape Ghana’s economic landscape. Extending operating hours in manufacturing, processing, and heavy industry would greatly increase production capacity. This would boost exports, reduce reliance on imported goods, stabilize the Ghanaian cedi by improving the trade balance, and generate foreign exchange. Key sectors like agro-processing, pharmaceuticals, automotive assembly, steel production, textiles, garments, and building materials could expand dramatically with multi-shift production schedules.

The multiplier effects of such an industrial strategy are significant. Manufacturing jobs typically offer higher wages, better benefits, and more secure contracts than informal service jobs. These roles also demand higher technical skills, which would encourage both public and private investment in vocational training centers, technical institutions, and engineering programs at the tertiary level. As Ghana’s youth face rising unemployment and underemployment, building a skilled workforce aligned with industrial needs would directly tackle one of the nation’s most pressing problems.

Additionally, Ghana’s resource-rich economy provides a strong foundation for industrialization. With plentiful reserves of gold, bauxite, manganese, oil, gas, and cocoa, Ghana has long supplied raw materials to global markets. However, the failure to process these resources domestically has made the country vulnerable to price fluctuations and external shocks. A 24-hour industrial policy would allow for continuous processing and refinement of raw materials into semi-finished and finished products, significantly increasing value addition and decreasing reliance on raw commodity exports.

The benefits of this transition would reach far beyond factories. A stronger industrial base would spur growth in related sectors like logistics, supply chain management, warehousing, packaging, maintenance, and industrial services. These connected industries would benefit from the constant production and generate jobs and opportunities for entrepreneurs and small businesses. This broader ecosystem would attract both domestic and foreign investment, further diversifying Ghana’s economic base and increasing resilience against external economic disruptions, such as global commodity price shocks or pandemics.

However, achieving this vision will require careful planning of supportive infrastructure and policy environments. Reliable and affordable electricity is essential. Current power generation and distribution systems must undergo significant upgrades to support 24-hour operations, especially in industrial zones. Renewable energy sources like solar, hydro, and biomass could help supplement the grid and reduce reliance on fossil fuels. Transportation infrastructure, including roads, railways, and ports, must also be updated to enable the smooth movement of raw materials, goods, and labor.

Strong labour protections are equally important. Running industries around the clock should not come at the cost of workers’ health, safety, or dignity. Clear rules governing night shifts, rest periods, overtime pay, and occupational safety should be established and strictly enforced. Social protections like health insurance, pensions, and worker representation must be included in the framework. A successful 24-hour economy must be both productive and respectful of workers.

Technology and innovation will also be key. Adopting modern production methods like automation, smart manufacturing, artificial intelligence, and robotics will be crucial for maximizing efficiency and competitiveness. Government policies should encourage technology transfer, research and development (R&D), and partnerships between local industries and global firms. Industrial parks and special economic zones can act as hubs for innovation and capacity building, providing the necessary infrastructure and incentives to attract large-scale manufacturing investments.

In conclusion, President Mahama’s vision of a 24-hour economy could be a turning point in Ghana’s development. To realize its full potential, the initiative must focus boldly and deliberately on industrialization.

Prioritizing manufacturing and value-added production over low-skill service jobs will establish a more inclusive, diverse, and resilient economy. While the service sector will remain a crucial part, it should support and grow alongside a strong industrial base rather than replace it. If implemented thoughtfully and with commitment, the 24-hour economy could lead Ghana toward middle-income status, lower poverty, and ensure that prosperity is shared across generations.

Stephen is an International Relations, Mediation & Conflict Resolution Expert)

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