While the central bank views the 24-hour economy programme as capable of boosting capital formation, improving asset use and creating jobs, its success rests on the soundness of banks and availability of affordable credit.
Ismail Adam, Director-Banking Supervision BoG, noted that the 24-hour policy’s success will ultimately boost the banking sector through increased utilisation of financial services by industry players.
“Through effective monetary policy, financial supervision and innovation in payment infrastructure, the Bank of Ghana creates the right conditions necessary for businesses to thrive, investments to grow and employment to expand, ultimately driving the 24-hour policy and sustainable economic development.”
Mr. Adam stressed that reduced inflation and stable prices could give the central bank space to cut interest rates, widening access to loans. At the same time, he noted banks must uphold strong governance and risk management to prevent failures that could undermine the system.
Payment infrastructure is also expected to play a role. The central bank said expanding the use of ATMs, online platforms and digital payments will reduce transaction costs and ensure liquidity around the clock, which is vital for a continuous economy.
Structural barriers however remain, as pointed out by the 24-Hour Secretariat’s Presidential Adviser Goosie Tanoh – who acknowledged that while finance is central to the plan, many businesses face high borrowing costs, strict collateral requirements and short-term lending structures which constrain growth.
The presidential adviser observed that the policy is centred on micro, small and medium enterprises, cooperatives and both local and foreign firms. But without more flexible credit, the ability of these groups to scale up remains limited.
To overcome these challenges, the Secretariat has engaged stakeholders – including banks – to design a package of financing solutions it hopes will align with central bank standards while remaining profitable for lenders.
