In his inaugural speech on 7 January 2025, President Mahama outlined his vision for a 24-hour economy, where “our markets are alive and bustling at all hours, with responsive public services accessible at all times so that businesses can operate flexibly to meet diverse demands.
Young people, including entrepreneurs, can find opportunities regardless of traditional limitations…”
The President’s vision is derived from the 24-hour economy policy (24HE) outlined in the National Democratic Congress (NDC) Election 2024 Manifesto, titled Resetting Ghana for Jobs, Accountability, and Prosperity.
I will outline an implementation strategy for 24HE in a series of articles.
Part 1 presents the goal, expected results, and foundation for implementing 24HE.
The bottom-line goal
The bottom-line goal of 24HE is to create new, decent jobs and reduce vulnerable work. In the context of Ghana, decent work should, at a minimum, provide the worker with a living wage, social security and national insurance, as well as workplace safety, welfare, and health.
Expected results
The Mahama administration must create 1.7 million new decent jobs over the next four years to reduce the current unemployment rate of 14.7%.
This target is based on the fact that, according to the Ghana Statistical Service’s (GSS) Labour Statistics for the third quarter of 2023 (the most recent data), there were 2.1 million unemployed persons and 8.2 million people engaged in vulnerable work. Furthermore, only 44% of the 375,000 people entering the labour force each year are employed, leaving 172,000 people to be added to the growing pool of unemployed annually.
The administration must also set a target to reduce existing vulnerable work. Vulnerable workers typically have low or irregular incomes, no social protection, and poor health and safety conditions at work.
The number of vulnerable workers in Ghana cuts across all sectors and includes farmers, fisherfolk, traders, kayaye, okada riders, trotro drivers, hawkers, and artisans. Some vulnerable workers do not consider themselves employed.
The foundation for implementing 24-HE
The foundation for implementing 24HE consists of four key elements: Good Governance, Peace and Security, Macroeconomic Stability, and Physical and Digital Infrastructure.
Good Governance
Good governance fosters investment, improves government credibility and political stability, and controls corruption, which in turn leads to job creation and national development.
However, the Worldwide Governance Indicators of the World Bank show that Ghana has deteriorated in areas such as voice and accountability, rule of law, and control of corruption between 2016 and 2023.
Chapter 6 of the NDC 2024 Manifesto outlines the administration’s good governance and anti-corruption agenda. President Mahama’s appointment of a Senior Presidential Advisor for Governmental Affairs and a Presidential Advisor for the National Anti-Corruption Programme provides additional momentum to the work of the National Commission for Civic Education (NCCE), the Commission for Human Rights and Administrative Justice (CHRAJ), relevant ministries and agencies, and civil society organisations.
Peace and Security
Peace and security across Ghana are essential to the success of 24HE. Ghana’s national security is closely linked to its immediate neighbours, including Togo, Côte d’Ivoire, and Burkina Faso, as well as the wider West African region and the national security interests of global powers such as the USA, China, and Russia.
President Mahama’s appointment of a Special Envoy to the Alliance of Sahel States (AES) – comprising Burkina Faso, Mali, and Niger – indicates a commitment to using diplomacy to address the regional security challenges in West Africa, which directly affect Ghana.
Macroeconomic stability
Macroeconomic stability is critical for the success of 24HE. While some stability has been restored since the previous government signed up for the three-year IMF programme (May 2023 – April 2026) following the deep economic and financial crisis in the first quarter of 2023, the current situation remains fragile.
Inflation stands at 23.8%, the Bank of Ghana’s monetary policy rate is 27%, and the benchmark 91-day treasury bill rate is 26.5%. The Ghana Association of Banks’ reference rate for lending is currently 29.72%.
It is worth noting that President Mahama and the NDC have pledged to reset the Bank of Ghana to include employment in its price stability mandate, as is the case with the United States Federal Reserve.
The 2025 budget, which is expected to be presented to Parliament by the Finance Minister in March 2025, will outline specific measures to reduce inflation and interest rates, and ensure only a marginal depreciation of the cedi, in line with the fiscal and monetary policy agenda set out in Chapter 1 of the NDC 2024 Manifesto.
Physical and digital infrastructure
Physical and digital infrastructure is vital for the success of 24HE. Chapter 4 of the NDC 2024 Manifesto outlines the administration’s infrastructure agenda, which covers energy, transport, housing, and information and communications technology.
Part 2 of this article series will present a high-level programme design for 24HE, along with the accompanying outcomes.
The writer is a Development Economist and Chartered Accountant, a member of the National Democratic Congress, and an Executive Member of Eagles Forum, a social democratic organisation.
He was a member of the NDC’s 2024 Manifesto Committee on Jobs and Employment Creation and the Lead for the 24-Hour Economy Task Team. He also served on the Social Sector Committee of the 2024 Transition Team.
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