By Kofi O. ASENSO
As Ghana aims for a 24-hour economy, the national conversation has sparked ideas about constant productivity and faster growth.
This ambitious plan, officially launched to keep key sectors running continuously, promises to unlock significant economic potential. However, to turn this vision into real prosperity, we must focus on the unrecognised hero of any thriving economy: the supply chain.
The success of a 24-hour economy does not just depend on keeping factories open or extending service hours. It relies on logistics. A highly efficient, strong, and flexible supply chain network is essential.
This network must move raw materials, components, and finished goods smoothly and reliably, day and night. Without this, the wheels of 24/7 industry will come to a stop.
The Current Landscape
Ghana finds itself at a logistical crossroads. On one side, the country is making good progress. The expansion of the Tema Port, hosting the African Continental Free Trade Area (AfCFTA) Secretariat, improved technological infrastructure for a digital economy and an improving logistics performance index signal great potential. Yet, to support a 24-hour economy, we must tackle the deep-rooted weaknesses in our supply chains.
The challenges are complex. A fragmented trucking sector, mainly run by small fleets, leads to inefficiencies and a lack of essential data for improvement. Poor transport infrastructure on key freight routes raises costs and delays. For our crucial agricultural sector, especially cocoa, these issues are serious. It is estimated that about 30% of cocoa produced is lost due to supply chain inefficiencies, such as bad road networks and insufficient storage. These are losses Ghana cannot afford.
Additionally, complicated customs processes, despite efforts to go digital, can cause delays at our ports, which are the gateways for our 24/7 trade. High financing costs for logistics companies, with interest rates often exceeding 25%, limit investment in modern fleets and storage facilities. This creates a major barrier to operating around the clock.
Pockets of Progress: Digitalization and Innovation as the Way Forward
Despite these challenges, there are hopeful signs of progress and innovation. Implementing the Integrated Customs Management System (ICUMS), also known as UNIPASS, at the Tema Port, while initially facing difficulties, is a crucial step toward making trade documentation easier and shortening clearance times. In healthcare, Ghana’s partnership with Zipline to use drones for on-demand delivery of medical supplies to remote areas is a leading example of how technology can fill infrastructure gaps and build a responsive supply chain.
These examples, even from different sectors, provide a model. The future strength of Ghana’s supply chains will depend on digital tools, such as fleet management software, real-time tracking, and data analysis for forecasting demand and spotting bottlenecks.
The Human Component: Reforming Labour Laws for a 24/7 Workforce
A 24-hour economy requires a 24-hour workforce. This needs a practical and forward-thinking approach to our labour laws. The current Labour Act of 2003, which sets a standard 8-hour workday and a 40-hour week, needs considerable revision to support flexible shifts necessary for continuous operations.
The discussion must cover fair pay for overtime and night work, promote gender equity and ensure the health and safety of employees working non-traditional hours. The government’s intention to review the Labour Act in light of the 24-hour economy policy is a welcome and necessary first step.
An Actionable Roadmap to a Resilient Future
Building a supply chain network suitable for a 24-hour economy requires strong efforts from both public and private sectors. The way forward should include:
- A National Supply Chain Policy: Experts call for a unified national supply chain policy. This would coordinate actions across different ministries and agencies, streamline planning, standardized procedures, and eliminate unnecessary overlap.
- Targeted Infrastructure Investment: Investing in key transport routes, including not just major highways but vital feeder roads connecting agricultural areas to markets, is crucial.
- Incentivizing Digital Adoption: The government can encourage small and medium-sized logistics companies to adopt digital technologies through tax breaks, subsidies, or low-interest loans for tech upgrades.
- Public-Private Partnerships for Skills Development: Working with universities and technical schools to create programs focused on modern supply chain management, logistics technology, and data analysis will be important to close the current skills gap.
- Learning from Global Best Practices: We can learn from logistics centres like Singapore and the Jebel Ali Free Zone in Dubai. They have successfully mastered 24/7 operations through outstanding infrastructure, smooth customs processes, and friendly regulations for business.
Conclusion
The 24-hour economy is a bold and necessary vision for Ghana’s future. However, its success will depend on the strength and reliability of the supply chains that support it. By tackling current challenges with strategic investments, policy changes, and a commitment to innovation, Ghana can achieve its 24/7 economic goals and position itself as a key logistics and trade hub in West Africa.
