By Nicholas Issaka GBANA
In his inaugural speech on 7 January 2025 President Mahama outlined his vision of 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 labelled 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 Bottomline Goal
The bottom-line goal of 24HE is to create new decent jobs and reduce vulnerable work. In the current context of Ghana decent work should at the minimum provide the worker a living wage; social security and national insurance; and workplace safety, welfare and health.
Expected Results
The Mahama administration has to create 1.7 million new decent jobs in the next four years to reduce the current unemployment rate of 14.7%.
This target is based on the fact that there were 2.1 million unemployed persons and another 8.2 million persons in vulnerable work per the Ghana Statistical Service’s (GSS) Labour Statistics for 2023 Quarter 3 (the most recent data). In addition, only 44% of the 375,000 persons that enter the labour force each year is employed leaving 172,000 persons to be added to the multitude of unemployed annually.
The administration has to set a target to reduce existing vulnerable work. Vulnerable workers typically have low or irregular income, no social protection, and low health and safety at work. The number of vulnerable workers in the Ghanaian economy cuts across all sectors and includes farmers, fisherfolks, traders, kayaye, okada, trotro drivers, hawkers and artisans. Some vulnerable workers do not consider themselves employed.
The Foundation for Implementing 24HE
The foundation for implementing 24HE consists of four elements; Good Governance, Peace and Security, Macro-Economic Stability, Physical and Digital Infrastructure.
First, good governance boosts investments, improves government credibility and political stability and controls corruption which in turn lead to employment and the development of a nation. However, the Worldwide Governance Indicators[1] of the World Bank indicates that Ghana deteriorated on the elements 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 fighting corruption agenda. President Mahama’s appointment of a Senior Presidential Advisor for Governmental Affairs and Presidential Advisor for the National Anti-Corruption programme provides additional impetus to the work of the National Commission for Civic Education (NCCE), Commission for Human Rights and Administrative Justice (CHRAJ), responsible ministries and agencies, and civil society organizations.
Second, peace and security throughout Ghana is essential to 24HE. Ghana’s national security is also linked to its immediate neighbors of Togo, Cote d Ivoire and Burkina Faso; the wider West Africa region, and the national security interests of global powers in particular 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 resolve West Africa’s regional security challenges that also directly affect Ghana.
Third, macro-economic stability is critical to the success of 24HE. Some stability has been restored since the past government signed up for the 3-year IMF Program (May 2023 – April 2026) after the deep economic and financial crisis in the first quarter of 2023. Nevertheless, the current situation remains delicate.
Inflation is 23.8%, the Bank of Ghana monetary policy rate is 27%, and the benchmark 91-day treasury bill rate is 26.5%. The Ghana Association of Banks reference rates for lending is currently 29.72%.
It is worthy of note that President Mahama and the NDC has pledged itself to reset the Bank of Ghana to add employment to its price stability mandate as is the case of the United States Federal Reserve.
The 2025 budget 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 a marginal depreciation of the cedi in line with the fiscal and monetary policy agenda specified in Chapter 1 of the NDC 2024 Manifesto.
Fourth, physical and digital infrastructure is vital to 24HE. Chapter 4 of the NDC 2024 Manifesto outlines the administration’s infrastructure agenda for energy, transport, housing, and information and communications technology.
Part 2 of this article series presents a High-Level Program Design for 24HE and accompanying outcomes.
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The writer is a Development Economist and Chartered Accountant, Member of the National Democratic Congress, and Executive Member of Eagles Forum, a social democratic organization.
He was a Member of the NDC’s 2024 Manifesto Committee on Jobs and Employment Creation and Lead for the 24-Hour Economy Task Team. He also served on the 2024 Transition Team Social Sector Committee.
[1] https://www.worldbank.org/en/publication/worldwide-governance-indicators/interactive-data-access
