Accra: 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.
According to Deutsche Welle, 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 1.7 million 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 $4 billion to drive this 24-hour policy is needed," he told DW. The expense has to be seen in the context of Ghana already owing $3 billion to the International Monetary Fund after defaulting repeatedly on some of its existing debt in recent years.
Ghana's approach as a government-backed policy is unique on the African continent, but faces multiple hurdles in its implementation. "On paper, the program sounds or appears innovative and progressive, with a propensity of transforming Ghana's economy. So it makes theoretical sense … [because] it's a program that seeks to create jobs, bring about productivity, lift up from poverty," said Amateye. However, 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 program."
DWs correspondent in Accra, Isaac Kaledzi, agrees that the execution of the 24-hour agenda could run into trouble—not only on account of the remaining questions on funding but also due to a lack of certain infrastructure elements to implement the plan countrywide. "The country is suffering with power [supply] currently. We are struggling … to keep the lights on [in Ghana]. We have to make sure that infrastructure is there first," said Kaledzi. He also stressed that smaller enterprises might be hesitant to be part of the plan: existing companies could suffer financial losses by creating more supply than there is demand by continuous production.
Mahama's plan stands out for not being exclusively a top-down approach. While championed and led by his government, the 24-hour Plus plan will rely on a collaborative approach involving labor unions, the private sector, and international development partners. This might become its Achilles heel, according to Amateye. He believes that in practice, the balance between various stakeholders will not be as balanced as the government might make it sound at this point.
In Ghana, Africa's 10th strongest economy, unemployment, poverty, and food insecurity have been long-standing policy issues. According to Amateye, what has stood in the way of affecting change has been the nation's mindset. In order for an innovative approach like shifting the economy to a 24-hour cycle, Ghanaians would need to alter the way they view their government. "So many people work for the government but not many trust the government," he said. Amateye believes Mahama wants to help restore public trust by creating transparent and accountable government departments to administer the funds involved in running the 24-hour economy.