Introduction
Accra, Dec 4, GNA-Ghana, like many other developing countries, faces significant economic challenges, including limited economic growth, high unemployment, and inadequate infrastructure.
To address them, policymakers and stakeholders are exploring innovative strategies to stimulate economic development.
One such strategy is the adoption of a 24-hour economy in Ghana by the National Democratic Congress, championed by its flagbearer; President John Dramani Mahama.
A 24-hour economy can be described as the extension of business hours beyond traditional daytime hours, enabling economic activity to occur around the clock.
The concept has gained traction globally, with cities like Tokyo, New York, and London already embracing the benefits of a 24-hour economy.
By harnessing the potential of nighttime economic activity, Ghana can unlock new opportunities for growth, job creation, and improved quality of life.
Results indicate that under the proposed ‘24-hour economy’ policy, Ghana’s real GDP growth (not to be confused with GDP growth rate) in 10 years would be 31.71 % higher than it would have been under a ‘business-as-usual’ scenario in the same timeframe (Yakubu Abdul-Salam, 2024).
This indicates substantial augmentations in economic output within the Ghanaian economy under a ‘24-hour economy’ setting.
The policy by the National Democratic Congress – NDC, would generate more than 3 million jobs within five years of its implementation, with manufacturing, agriculture, wholesale and retail trade, services, construction and transport sectors experiencing substantial employment gains
According to a report by the World Economic Forum (2024), the nighttime economy generates substantial revenue and employment opportunities globally, with major cities around the world reaping billions of dollars in annual benefits, such as Tokyo’s $30.4 billion, Paris’s $23.1 billion, and Sydney’s $16.4 billion, while also creating hundreds of thousands of jobs, including 300,000 in New York City and over 1 million in London, thereby making a significant contribution to their overall economic development and growth.
The NDC 24-hour economy the GITFiC believe is rooted in the concept of maximizing productivity by extending business operations, public services, and social activities around the clock.
Proponents
Proponents argue that such a system could significantly boost economic output, create jobs, and better integrate Ghana into the global economy (Samuel Lartey (Prof))
The policy’s transformative effects are driven by its ability to stimulate capital investment and capital formation, boost productivity and increase household incomes.
Ghana’s urban centers, particularly Accra, Kumasi, Tamale and others, possess the potential to become vibrant hubs of economic activity, driving growth and development nationwide. However, the country’s current economic landscape is characterized by: Limited operating hours, restricting economic activity to daytime, inadequate infrastructure, hindering nighttime economic activity, inefficient resource utilization, resulting in wasted opportunities.
Adoption
The adoption of a 24-hour economy can address these challenges by: increasing economic activity and GDP growth, creating new employment opportunities and reducing unemployment, enhancing competitiveness and attracting foreign investment.
This study by The GITFiC aims to investigate the potential impact of a 24-hour economy on Ghana’s economic landscape, exploring its benefits, challenges, and strategic implications.
Significance of the Study:
Our study contributes to the existing body of knowledge on the 24-hour economy, providing valuable insights for policymakers and stakeholders seeking to stimulate economic growth and development in Ghana, drawing lessons from successful initiatives such as Singapore’s “City in a Garden” strategy, which transformed the city-state into a vibrant 24-hour hub, and London’s night-time economy, which contributed significantly to the UK economy, with the aim of informing Ghana’s approach to leveraging the benefits of a 24-hour economy.
Singapore’s “City in a Garden” initiative aimed to transform the city-state into a vibrant 24-hour hub, enhancing quality of life, boosting tourism, and increasing economic growth.
Launched in 2010, this comprehensive strategy addressed various aspects of urban development.
Key Initiatives are expanded Nightlife and Entertainment Options: Singapore introduced new bars, clubs, and live music venues, particularly in areas like Clarke Quay and Marina Bay. This move catered to the growing demand for nighttime leisure activities.
Public Space Development: Iconic projects like Gardens by the Bay and the Waterfront at Marina Bay showcased Singapore’s stunning architecture and greenery. These public spaces became popular attractions and event venues.
Smart City Technologies: Singapore implemented various smart city initiatives, enhancing efficiency and sustainability. This included intelligent transportation systems, energy-efficient buildings, and data analytics for urban planning.
Enhanced Public Transportation: Singapore introduced 24-hour bus and train services, making it convenient for residents and tourists to navigate the city at any time.
Outcomes:
Tourism Growth: Singapore saw a 20% increase in tourism between 2010 and 2015, attracting millions of visitors.
Foreign Investment: The city-state secured $10 billion in foreign investment, contributing to its economic growth.
GDP Growth: Singapore’s GDP grew by 5%, driven by the expansion of key industries.
Analysis and Discussion
The potential benefits of implementing a 24-hour economy in Ghana are significant and multifaceted, impacting various sectors and fostering overall economic growth.
One of the most immediate advantages is the boost to employment. By allowing businesses to operate beyond traditional working hours, the economy could support additional shifts in sectors such as retail, hospitality, healthcare, logistics, and manufacturing.
This shift would not only reduce unemployment but could also provide more flexibility for individuals seeking non-traditional working hours, thereby catering to the needs of different demographics, particularly youth and part-time workers.
For instance, fishing activities can continue seamlessly, increasing the availability of fish products for both domestic consumption and export.
This would not only enhance food security but also create more stable income streams for the 2.7 million Ghanaians dependent on the fishing industry (FAO,2020).
The implementation of a 24-hour economy in Ghana has the potential to significantly enhance the country’s access to the international market.
This transformation would enable Ghanaian businesses to engage in seamless trade with partners across different time zones, thereby facilitating smoother transactions and interactions.
Additionally, the promise of increased productivity and returns could attract global investment, making Ghana a more appealing destination for investors.
Moreover, a vibrant tourism sector could emerge from extended services and attractions, contributing to a stronger economic landscape.
Ghana’s strategic position as a regional hub, combined with the availability of services and labour around the clock, would further enhance its attractiveness to multinational companies looking to operate in Africa.
Sectors that require continuous operations, such as telecommunications, logistics, and manufacturing, would particularly benefit from a 24-hour economy.
This shift could lead to increased capital inflows, technology transfer, and job creation for the local workforce, ultimately fostering a more competitive presence for Ghana on the global stage.
A 24-hour economy is also likely to increase productivity, as continuous operations maximize the use of resources, such as machinery, infrastructure, and human capital.
This means that both public and private assets, such as roads, utilities, and commercial spaces, can be used more intensively, thereby reducing the per-unit cost of these investments.
For example, transportation networks and energy infrastructure would support a larger volume of economic activity without the need for proportional increases in capital spending.
The shipping industry in Ghana stands to gain significantly from the adoption of a 24-hour economy, particularly through the extension of operational hours at major ports such as Tema and Takoradi.
The Meridian Port Services is currently operationalizing a 24/7 service. This strategic shift would enable Ghana to: reduce vessel turnaround times: By operating around the clock, ports can facilitate quicker loading and unloading of cargo, minimizing delays,, increase cargo handling capacity: Extended hours would allow for more shipments to be processed, accommodating a higher volume of trade, improve overall port efficiency: Continuous operations can streamline logistics, reducing congestion and enhancing service delivery.
These enhancements are crucial, especially considering that operational inefficiencies in African ports cost the continent approximately $20 billion annually in trade losses due to congestion, delays, and suboptimal logistics (World Bank, 2019).
By fully embracing a 24-hour operational framework, Ghana can effectively prevent congestion, minimize backlogs of ships waiting to dock, and create a more favorable environment for international shipping lines.
Furthermore, this strategic shift could lead to increased port revenues and solidify Ghana’s position as a regional maritime hub.
For comparison, Dubai’s Jebel Ali Port, which operates continuously, contributes approximately $3.5 billion annually to the UAE economy, thanks to its efficient operations and ability to attract global shipping traffic (DP World, 2020).
The tourism and entertainment sectors could see significant gains as well. By fostering nightlife and offering a variety of late-hour recreational and cultural events, Ghana could attract more tourists, particularly those seeking unique experiences in African cities.
An enhanced tourism experience, characterized by vibrant nightlife, cultural events, and accessible late-hour amenities, could boost visitor spending and contribute to the country’s image as a dynamic destination, thereby supporting local businesses and creating additional employment opportunities in the tourism and hospitality sectors.
Implementing a 24-hour economy in Ghana can maximize agricultural output and reduce downtime by allowing for continuous farming, processing, and marketing activities.
This can lead to the creation of numerous job opportunities in agriculture, processing, and logistics, ultimately reducing unemployment in rural areas and increasing household incomes.
Farmers can achieve better prices for their produce due to extended selling and processing hours, resulting in increased income and financial stability.
Agriculture
The agriculture sector accounts for a significant portion of the country’s employment, as an estimated 75% of the rural population worked in the sector as of February 2023.
Agriculture is projected to grow at a compound annual growth rate of 2.7% through to 2028, reaching an annual value of $3.8bn (oxford business Group,2024).
Modern farming techniques are expected to play a key role in the sector’s development, such as through the deployment of drone like (Normalized Difference Vegetation Index) to monitor crops and identify pest infestations. While cocoa is the country’s most notable crop export and the sector’s largest revenue-earning product, there is potential to increase export of shea butter, cashew nuts, fruits and vegetables, and livestock.
The implementation of a 24-hour economy can significantly boost these projections by increasing operational hours, reducing downtime, and enhancing overall efficiency in the agricultural sector.
With a 24-hour economy, farmers can plant, harvest, and process crops around the clock, leading to increased productivity and yield.
This, in turn, can lead to higher revenues, improved livelihoods for farmers, and increased export earnings.
Furthermore, a 24-hour economy can facilitate the growth of supporting industries, such as logistics, processing, and manufacturing, creating new job opportunities and stimulating economic growth.
By 2028, the agricultural sector’s annual value could potentially exceed $5bn, with increased exports of high-value crops and livestock products.
The 24-hour economic policy by the NDC we at GITFiC believe is also expected to positively impact the education sector by increasing flexibility through flexible scheduling and online and blended learning platforms, enhancing accessibility through extended library hours and increased support services, improving student employment opportunities through part-time job opportunities and entrepreneurial ventures, increasing community engagement through lifelong learning opportunities and partnerships with local businesses and organizations, and facilitating technology integration through the increased use of digital tools and data-driven decision making, ultimately leading to better student outcomes, more effective use of educational resources, and a more skilled and adaptable workforce that is better equipped to compete in the global economy.
Additionally, a 24-hour economy would increase government revenue, as extended operating hours across multiple industries would lead to higher levels of economic activity.
This could result in increased tax revenue from both goods and services consumed during non-traditional hours and from income taxes on additional jobs created to support night-time operations. This increase in government revenue could be reinvested into public goods and services, creating a virtuous cycle of growth.
The Challenges: Navigating the Shadows
The vision of a 24-hour economy, while promising, is not without its hurdles. One significant challenge lies in the demand for robust infrastructure to sustain continuous operations.
The success of this ambitious policy hinges on overcoming various logistical issues tied to essential components of infrastructure.
Reliable Power Sources: A 24-hour economy heavily relies on uninterrupted power sources. However, ensuring a consistent and reliable energy supply is a formidable task. Frequent power outages and fluctuations can disrupt operations, affecting businesses and public services alike.
Addressing this challenge demands substantial investments in power generation and distribution infrastructure to meet the heightened demand
Secure Transportation: The constant activity in a 24-hour economy necessitates reliable and secure transportation systems. This includes not only public transportation, but also the logistics networks supporting the movement of goods. Inadequate transportation infrastructure could lead to delays, inefficiencies, and increased operational costs. Enhancing and securing transportation routes becomes imperative to sustain the flow of goods and services
Logistical Complexities: Operating around the clock introduces logistical complexities that traditional working hours may not entail. Coordinating shifts, managing resources, and maintaining quality
services continuously pose challenges. Without streamlined processes and infrastructure to support these complexities, the risk of disruptions and inefficiencies looms large.
Financial Implications: Implementing the necessary infrastructure upgrades comes with a hefty price tag. Governments and businesses need to allocate significant financial resources to build and maintain the infrastructure essential for a 24-hour economy. This financial burden could strain budgets and potentially divert resources from other critical sectors.
GITFiCs Findings to NDC proposal
The findings of our study highlight the potential benefits and challenges of implementing a 24-hour economy in Ghana. The discussion below elaborates on these findings, exploring their implications for policy and practice.
Economic Benefits and Implications
“Our study’s findings suggest that a 24-hour economy can lead to increased GDP growth, job creation, and improved competitiveness. These economic benefits are consistent with existing literature (World Bank, 2019; International Labour Organization, 2020). To harness these benefits, policymakers should prioritize infrastructure development, particularly transportation and energy.
Infrastructure Development and Challenges
The study’s findings emphasize the importance of reliable transportation, energy, and communication infrastructure in supporting a 24-hour economy. However, Ghana’s current infrastructure deficits pose significant challenges (African Development Bank, 2020). Addressing these challenges requires strategic investments and public-private partnerships.
Regulatory Frameworks and Human Capital Development
The study’s findings highlight the need for updated regulatory frameworks and workforce training to accommodate extended business hours.
Policymakers should revise existing regulations to facilitate a smooth transition to a 24-hour economy (Ghana Ministry of Trade and Industry, 2020). Stakeholders should invest in workforce training and development to ensure employees are equipped to thrive in a 24-hour economy.
Ghana-Specific Implications
According to the research made by Dr Yakubu Abdul – Salam, its shows that in the first year of the implementation of the policy, Ghana’s real GDP at market prices will grow by 11.43% higher than it would have been under a ‘business-as-usual’ scenario.
By Year 5, when the economy is expected to be approaching steady-state with respect to the policy, growth in real GDP at market prices would be 26.62% higher under the ‘24-hour economy’ scenario compared to the ‘business-as-usual’ scenario.
Towards Year 10, when the economy had attained steady-state with respect to the implementation of the policy, the growth in real GDP at market prices would be 31.71% higher compared to the ‘business-as-usual’ scenario.
The real GDP at market prices growth level of 31.71% by Year 10 for example implies that Ghana’s GDP level under a ‘24-hour economy’setting will be about a third higher than it would have been under the ‘business-as-usual’ scenario in a decade.
Our study’s findings suggest that Accra and Kumasi can become vibrant hubs of economic activity, driving growth and development nationwide. Ghana’s tourism and tech industries can also benefit significantly from a 24-hour economy.
GITFiCs Policy Recommendation to NDC
To support the successful transition to a 24-hour economy in Ghana, the government should begin by prioritizing infrastructure development, especially in energy supply, public transportation, and digital
Connectivity
Investments in renewable energy sources, such as solar and hydroelectric power, would help ensure continuous operations without over-reliance on non-renewable energy, while expanded and affordable public transportation services would facilitate movement for both workers and consumers during nighttime hours.
Furthermore, improving digital infrastructure by expanding high-speed internet coverage across the country would support digital businesses and online transactions around the clock, driving growth in sectors like e-commerce and digital finance.
Security
Security is another crucial element. Increasing police presence in commercial zones and implementing community policing programmes would enhance public safety, especially in areas with high night-time activity.
The government could also invest in better street lighting and CCTV surveillance in major urban areas to deter criminal activities and ensure that public spaces remain safe for night-time use.
Labour regulations
Labor regulations will play a key role in this transition, with the introduction of fair policies for night-shift workers being essential.
These policies should provide adequate compensation, rest breaks, and health and safety benefits tailored to the needs of workers who operate during non-standard hours.
Additionally, companies should adopt flexible work arrangements to help workers maintain a balance between their personal and professional lives, reducing the risks of burnout and health-related issues associated with night shifts.
Incentives for businesses
Incentives for businesses to adopt 24-hour operations will be necessary, such as tax breaks and subsidies for businesses in priority sectors like hospitality, retail, and manufacturing.
Small and medium-sized enterprises (SMEs) could benefit from grants, loans, and training programmes to help them adapt to extended business hours, which would support job creation and economic diversification.
The government should also encourage the adoption of digital payment systems to reduce cash dependency, making transactions safer and more convenient for businesses and consumers outside traditional hours.
Workforce development
Workforce development and education initiatives should be expanded to include skill development programmes focused on sectors relevant to the night economy, such as hospitality, logistics, and digital commerce.
Partnerships with educational institutions could offer relevant courses, while public awareness campaigns would inform citizens about the opportunities within a 24-hour economy, fostering broader acceptance and participation.
Agricultural policies
To boost Ghana’s agricultural sector, the government can implement a policy that promotes extended farming hours, invests in irrigation systems and storage facilities, provides training and
support for farmers, and establishes public-private partnerships to enhance access to markets, finance, and technology.
Education
To transform Ghana’s education sector, the government must implement a policy that includes flexible scheduling, extended library hours, technology integration, teacher training, infrastructure development, public-private partnerships, and monitoring and evaluation, with a phased implementation plan that involves conducting a needs assessment and developing a detailed plan within the first 12 months, implementing key initiatives within 12-24 months, and evaluating impact and scaling up successful initiatives within 24-36 months.
Policy implementation
Collaboration with various stakeholders is essential to ensure effective policy implementation. The government should engage in public-private partnerships (PPPs) to leverage resources and expertise for major projects in transportation, energy, and security. Regular consultations with labor unions can help to establish fair labor standards and protect worker rights, while involving local communities in policy planning would ensure that specific local needs are addressed, enhancing community support and participation.
Conclusion
Implementing a 24-hour economy in Ghana requires strategic planning, infrastructure development, and regulatory updates.
Policymakers and stakeholders should prioritize investments in transportation, energy, and communication infrastructure, as well as workforce training and development.
By addressing the challenges and harnessing the benefits, Ghana can unlock the potential of a 24-hour economy, driving economic growth and development.
The successful implementation of a 24-hour economy in Ghana can serve as a model for other African countries, demonstrating the potential for economic transformation through innovative policy interventions.
Furthermore, Ghana’s unique cultural and economic context presents opportunities for tailored solutions, leveraging its strengths in industries such as tourism, agriculture, and technology.
The potential benefits of a 24-hour economy in Ghana are substantial, with far-reaching implications for economic growth, job creation, and improved quality of life.
By embracing this concept, Ghana can position itself as a leader in African economic development, driving growth and prosperity for generations to come.
The 24-hour economy is a transformative force reshaping urban landscapes and driving economic growth, thereby enhancing the quality of life for citizens.
By leveraging cutting-edge technology, innovation, and integrated planning, cities can unlock unprecedented benefits, including increased GDP, diversified revenue streams, improved quality of life, vibrant nightlife, efficient resource utilization, and reduced congestion.
The 24-hour economy has the potential to create sustainable, livable, and thriving cities, making it crucial for cities to embrace this paradigm shift as the world’s urban population grows.
Key takeaways from successful 24-hour economy strategies include driving economic growth and diversification, enabling sustainable operations through integrated planning and technology, enhancing quality of life through vibrant nightlife and 24-hour services, and balancing growth with social and environmental concerns.
The key takeaways from the policy recommendations for Ghana’s agriculture and education sectors include implementing extended farming hours, investing in irrigation systems and storage facilities, and providing training and support for farmers in the agriculture sector, while also promoting flexible scheduling, extending library hours, integrating technology, and providing teacher training in the education sector, all of which can potentially lead to increased productivity, improved education outcomes, and enhanced economic growth in Ghana.
To effectively implement a 24-hour economy, cities should invest in smart city technologies and innovation hubs, develop adaptive urban planning and policy frameworks, foster entrepreneurship, and community engagement, and monitor and address emerging challenges.
Successful 24-hour economy strategies have been implemented in cities like Singapore, New York City, and Tokyo, demonstrating the potential for increased GDP, foreign investment, and job creation.
The 24-hour economy is not just a trend-it’s a game changer for cities worldwide, offering unparalleled economic, social, and environmental benefits. According to the World Economic Forum, the future of cities depends on embracing this paradigm shift.
McKinsey Global Institute research highlights the significance of urbanization in emerging markets.
The 24-hour economic policy by the National Democratic Congress, if implemented under the current economic predicament, has the gross potential of changing the fiscal fortunes, accelerate speed economic growth and transforming the country to a lower first world economy with a potential of reaching the optimum gauge; thus, A FIRST WORLD ECONOMY.
GNA