Story by, Paul Mensah Nsor
In a strategic meeting discussing Ghana's ambitious 24-Hour Economy initiative, Michael Kpesaa-Whyte, Acting Director-General of SIGA, outlined a comprehensive plan to revolutionize the country's economic productivity by extending work hours and transforming systemic operations.
Kpesaa-Whyte emphasized the critical role of the public sector in driving economic development, highlighting historical precedents where government institutions like electricity providers, water services, and banks have been instrumental in national progress. The proposed 24-hour economy is not just an economic strategy, but a comprehensive approach to address youth unemployment and maximize national productivity.
Central to the strategy is a radical transformation of Ghana's transportation infrastructure. The plan calls for significant improvements in ground, water, and air transport systems to facilitate faster movement of goods from rural areas to urban centers and expedite export processes. This infrastructure overhaul is seen as crucial for enabling round-the-clock economic activities.
We are not building capacity or technology to meet our basic needs," a senior official stated during the meeting. "Instead, we're creating value for economies elsewhere, leaving Ghana perpetually dependent on external support."
The initiative centers on three transformative pillars: production transformation, supply chain efficiency, and human capital development. Notably, the program aims to address significant challenges in sectors like agriculture, where productivity lags far behind global standards. For instance, oil palm yields in Ghana currently stand at six tons per hectare, compared to 18 tons in more advanced agricultural economies.
A groundbreaking approach includes a participatory land access model, designed to engage community landowners and ensure fair development. This innovative strategy recognizes the diverse attitudes of different communities towards economic development, with some chiefs eagerly supporting progress while others remain hesitant.
The economic blueprint also tackles the declining job creation potential, highlighting that employment elasticity has dramatically dropped from 0.7 in the 1990s to just 0.2 today. The strategy aims to reverse this trend by creating an economy that works for all citizens, regardless of social class or location.
Critically, the plan introduces a unique "social star" position to monitor and ensure the program's inclusivity, preventing wealth concentration among a privileged few.
Supply chain inefficiencies are another key focus. Current estimates suggest that 60% of commodity costs in Ghanaian supermarkets are attributed to supply chain expenses, compared to a global average of just 15%. The strategy aims to dramatically reduce post-harvest losses, which currently range from 35% to a staggering 70% for certain commodities like yams
A key implementation mechanism will involve redesigning performance contracts for public sector entities. Instead of traditional 9-to-5 working models, organizations will be encouraged to adopt flexible schedules that allow continuous operations, potentially creating more job opportunities and increasing overall economic output.
The initiative also recognizes the need for structural reforms, including potential mandate reviews for various public institutions to align with the 24-hour economy vision. Training programs for CEOs and board members are planned to ensure smooth transition and prevent potential financial management challenges.
By reimagining work patterns and institutional frameworks, Ghana aims to unlock new economic potential, create more employment opportunities, and position itself as a dynamic, productivity-driven economy in the global marketplace.
The strategy represents a bold reimagining of national economic potential, with the public sector positioned as the primary catalyst for this transformative approach.