The 24-hour economy has increasingly become the most touted and talked about manifesto promise of the opposition party – the National Democratic Congress (NDC), in Ghana’s political landscape and towards the December 7, 2024, Presidential and Parliamentary elections.
A lot of the NDC party folks and supporters have provided diverse perspectives, and in some cases unrealistic explanations, to the 24-hour economy. To many of them, the 24-hour economy is the game changer for the social and economic development of the country. It is touted as an approach to enhancing job creation and increasing productivity in Ghana, thereby transforming the country.
However, 24-hour economy is not a low hanging fruit nor a silver bullet capable of doing magic for rapid economic transformation. It requires thoughtful decisions backed by data and learning from the experiences and lessons of other contexts where it has worked well. It requires robust and progressive implementation strategies that culminate into an operational 24-hour economy. Here, I reflect on three key questions and indicators paramount to the effective implementation of a 24-hour economy in Ghana.
Will the 24-hour economy be implemented across all sectors?
The 24-hour economy cannot be implemented across all sectors of the Ghanaian economy. It is therefore critical to garner and provide realistic information on sectors that are suitable for the 24-hour economy. Typically, sectors, such as health, already make provisions for the provisioning of essential services to customers throughout the day. Will this and other sectors become the targets under the 24-hour economy? Essentially, one unanswered question is as to whether the 24-hour economy targets only public sector or both public and private. Implementing a 24-hour economy from a public sector perspective is quite feasible given the government’s control of the sectors.
Yet, it will not be economically sound to implement the 24-hour economy for all public sectors, as not all the sectors have services that are required beyond the 8-hour daily schedule and those with required services beyond the 8-hour daily schedule, there are already provisions in place. In a situation where the focus is on the private sector, it become tricky as to whether the 24-hour economy is in the interest of the private sector. This is because businesses do not operate on the mere fact that they want to support a particular government policy. Rather they operate based on profit-oriented approach that is guided by logic and sound reasoning in support of every decision they make.
Is there a demand that necessitates a 24-hour economy in Ghana?
A key requirement and indicator for a 24-hour economy is demand. There must be a demand for any organisation to operate beyond the 8-hour daily schedule. The demand must be such that the 8-hour daily schedule is insufficient to satisfy and cater for the existing demand. Where there is no demand, any sector, be it public or private, will see no need to operate on a 24-hour basis. One may argue that the 24-hour economy will cause an increase in production from the business side. While this may be true, in reality, an increase in production must respond to a particular demand.
Experiences from Germany, Australia and other developed economies show that even when companies that operate shopping malls and supermarkets can operate on a 24-hour basis, they rather restrict themselves to the daily schedule. This is largely due to the fact that beyond the daily schedule, there is little demand for their services. Even if there is demand, the existing demand is so small to make a business case. As such, catering for the existing demand beyond their daily schedule increases their operational cost. In a situation where the cost of doing business is high for the private sector, they are more likely to retreat from participation. This explains why many of these companies in these economies that are advanced still operate strictly on the usual business schedule.
The African Continental Free Trade Area (AfCFTA) can be an important mechanism for the implementation of a 24-hour economy given the large markets it promises to provide across the African continent. However, progress in the implementation of AfCFTA has been slow and there is currently not massive trade among countries as a result of AfCFTA. Even where trade exists among countries, businesses entering into a new market beyond Ghana require a lot of carefully thought-through and data-backed investment decisions to manage competition and maintain business sustainability.
Do we have the requisite security apparatus for 24-hour economy?
It is crucial to make adequate and enhanced security provisions when implementing a 24-hour economy. Human and technology-enhanced security infrastructure is key to the successful implementation of a 24-hour economy. Security services must be readily available and accessible to both business and individuals. Ghana currently does not have the requisite security infrastructure to provide the required services. Even with the current existing business schedules, individuals and businesses often find it challenging in accessing swift security services.
This is partly because we do not have enough security personnel coupled with low surveillance. Day light robberies and the losses businesses make in such incidents can be a compelling reason to discourage their participation in a 24-hour economy. Hence, one strategic approach is to intensify and increase security personnel presence and security surveillance across the country and particularly in areas where businesses operate. This can offer some kind of assurance to businesses and boost their willingness to participate in a 24-hour economy. In essence, huge investment in security infrastructure and surveillance within and across cities and towns is a pre-condition for a 24-hour economy.
In conclusion, the 24-hour economy can be a promising approach to enhance social and economic development and transformation in Ghana. As indicated by the NDC, the 24-hour economy can enhance job creation. However, implementing a 24-hour economy isn’t a silver bullet that offers magical benefits. It requires a lot of investment decisions that must be made and implemented prior to the actual implementation of a 24-hour economy. These investments are actually the building blocks and foundation on which a 24-hour economy can operate and thrive. Implementing a 24-hour economy without the existence of these requisite investments and infrastructure will lead to a rapid decline in participation, particularly by the private sector. As observed across many African countries, while many policies and programmes have been introduced by current and successive governments, many of them collapse within few years of their implementation. This is because of the neglect of the consideration of critical factors needed for the effective implementation of the polices and interventions. The 24-hour economy will be no different if critical considerations and the necessary investments are not made prior to its rollout.
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