As the next administration of President John Mahama and the NDC prepares to take office in about a month, the flagship program, a 24-hour economy, has become one of the most talked-about and anticipated policies.
Typically, a 24-hour economy involves uninterrupted business operations, services, and trading activities around the clock, creating opportunities for economic growth, employment, and increased revenues.
Since the NDC introduced its proposed 24-hour economy policy during the election campaign, the idea has sparked significant debate among stakeholders and the general public. While some have expressed optimism about its potential to transform Ghana’s economy, others have raised concerns about its feasibility. Notably, Franklin Cudjoe, the head of the African think tank Imani Africa, has dismissed the policy as merely an “aspirational idea.” Critics argue that without adequate infrastructure, reliable energy supply, and robust policy frameworks, such an ambitious plan might remain a lofty promise rather than a practical solution to Ghana’s economic challenges.
For a country like Ghana, transitioning to such an economy hinges on well-thought-out strategies and infrastructure investments. This approach, though achievable and feasible, as demonstrated by the successes of Western and global economies, requires localized solutions tailored to Ghana’s unique context.
Setting Up Strategic Commercial Hubs
A critical step in implementing this policy is establishing commercial hubs in strategic locations across the country. These hubs would serve as catalysts for economic activity, integrating various industries, fostering innovation, and attracting local, regional, and international trade.
Trading Hubs To achieve the proposed 24-hour economy, trading hubs focused on general consumer goods, cosmetics, and electronics must be established. Ghana could revitalize the once-vibrant trade fairs at the International Trade Fair Center while emulating successful models like Dubai’s Global Village or Singapore’s Orchard Road shopping district. Strategically positioned in cities like Accra, Kumasi, Takoradi, and Tamale, these hubs could provide spaces for retail, wholesale, and trade shows. Even existing structures like the “night markets” could be expanded to a much larger scale to meet this vision.
Petroleum Hubs With growing interest in petroleum products, the NDC administration can implement petroleum hubs to cater to oil and gas industries, capitalizing on Ghana’s oil reserves. Singapore’s Jurong Island, a leading oil and gas hub built through a public-private partnership (PPP), serves as an exemplary model. Ghana could replicate this in Takoradi, integrating services such as refining, storage, and distribution of petroleum products.
Maintenance, Repair, and Overhaul (MRO) Hubs MRO hubs, if effectively established, would cater to industries like mining, automotive, aviation, and civil engineering, providing spare parts, tools, and relevant services. Dubai’s MRO hubs have proven successful in supporting the aviation industry globally. Ghana can similarly target African airlines and mining companies operating in Ghana and West Africa.
Role of Public-Private Partnerships (PPP)
The success of these hubs will depend heavily on collaboration between the government and private investors. Public-private partnerships have been instrumental in building large-scale infrastructure globally. For instance, India’s Hyderabad HITEC City was developed through a PPP model, transforming the region into a global IT and trade hub. Ghana could adapt this model to ensure efficiency and sustainable management, leveraging the private sector’s expertise and resources.
Creating Demand and Customers
Critics of the 24-hour economy policy have raised concerns about a potential lack of demand for goods and services. However, the proposed hubs can create a culture of availability, fostering demand throughout all hours of the day. These hubs, if efficiently managed, would serve a wide range of customers:
- Ghanaian Public: Citizens would have 24/7 access to consumer goods, pharmaceutical products, fuel, MRO products, and essential services.
- Local Industries: Companies in oil and gas, mining, aviation, and other sectors can source materials locally, reducing import reliance and strengthening the economy.
- Neighboring Countries: Ghana’s central location in West Africa makes it ideal for attracting businesses from Togo, Nigeria, and Burkina Faso. For instance, South Africa’s Durban Port serves as a regional logistics hub, drawing clients from neighboring countries.
- Other African and Foreign Countries: Foreign businesses with advanced technical products can set up shops in these hubs, boosting Ghana’s economy. Kenya’s Two Rivers Mall, which combines local and international retail brands, is a success story Ghana can emulate.
Supporting Ecosystems for 24/7 Operations
To sustain 24-hour hub activities, critical supporting ecosystems must be established:
Hotels and Eateries Around-the-clock commercial activities will spur demand for accommodation and food services. For example, Las Vegas thrives as a 24-hour economy due to the synergy between its entertainment hubs and supporting infrastructure like hotels and restaurants. In Ghana, popular areas like Osu’s Oxford Street could become vibrant 24/7 zones.
Essential Services Transportation, healthcare, and security services will need to operate continuously. New York City’s subway and 24-hour retail services are prime examples of how essential services support a round-the-clock economy. Incentives could encourage businesses in these industries to participate in the policy.
Economic and Social Benefits
The potential economic and social benefits of a 24-hour economy policy in Ghana include:
- Increased Employment: Around-the-clock operations will create jobs in retail, logistics, security, hospitality, and more.
- Boosting Tourism and Trade: International visitors and traders will see Ghana as a reliable trade and leisure destination.
- Urban Development: The hubs would catalyze satellite developments across other regions, leading to urbanization. Shenzhen’s transformation from a fishing village to a global tech hub began with targeted economic zones. Ghana can replicate this with the right approach.
Challenges and Recommendations
While promising, implementing a 24-hour economy policy will face challenges that require proactive measures:
- Energy Supply: Stable and affordable electricity is essential. Investing in renewable energy, as seen in Germany, could mitigate Ghana’s energy challenges. Basic infrastructure, such as streetlights, must also be prioritized to ensure safety.
- Security: Adequate policing and surveillance systems will be critical to ensuring the safety of workers and visitors.
- Transport Infrastructure: Upgrading road networks, ports, and railways will facilitate smooth logistics. Ethiopia’s Addis-Djibouti railway is an example of how investment in transport infrastructure can improve trade flows.
- Skilled Workforce: Training programs will be needed to prepare Ghanaians for new job opportunities in these hubs.
Conclusion
The proposed 24-hour economy policy is more than feasible and holds immense potential for Ghana’s economic transformation. By strategically establishing trading, petroleum, and MRO hubs, leveraging public-private partnerships, and drawing lessons from global success stories, Ghana can position itself as a hub for trade and innovation in Africa. The long-term benefits of job creation, foreign exchange earnings, and enhanced regional trade will outweigh initial challenges, ensuring sustained growth for years to come.
By Kwabena A. Peprah
