The NDC government has officially launched its flagship 24-hour economy policy, 176 days into its administration. The 283-page document not only outlines how the initiative will be implemented and funded but also signals a notable shift in focus.
Initially seen as a strategy to extend the working hours of public institutions and businesses, the policy has evolved into a broader economic transformation agenda aimed at addressing structural bottlenecks in Ghana’s economy.
Two-Phase Rollout
The policy will be rolled out in two phases. The first phase focuses on direct incentives to encourage businesses to operate longer hours, while the second addresses the deeper infrastructure and legal reforms needed to sustain a continuous production model.
Tax Breaks for Extended Operations
To encourage participation, the government is offering a comprehensive set of tax and regulatory incentives. Companies that sign up for the programme will enjoy:
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Zero import duties on manufacturing equipment, renewable energy systems, raw materials, and logistics infrastructure.
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Corporate tax exemptions for strategic agricultural sectors, including grains, vegetables, oilseeds, tubers, livestock, and sugar.
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Corporate tax rebates of 25% for two-shift operations and 50% for companies running three shifts.
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Targeted VAT exemptions to reduce the cost of locally manufactured goods.
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Discounted electricity tariffs for firms operating between 10 p.m. and 6 a.m.
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Export rebates ranging from 2% to 6% for exporters of manufactured goods.
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Fast-tracked utility connections and regulatory clearances.
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Access to low-interest credit from the Development Bank Ghana.
In the cocoa sector, local processors enrolled in the programme will receive easier access to raw cocoa beans.
While these measures are designed to boost production, create jobs, and grow exports, they will require legal amendments in Parliament related to taxation, trade, investment, and procurement.
Fixing Structural Bottlenecks
The second phase focuses on building large industrial parks—referred to as Wumbei Parks—in each region. Each park will span at least 50 acres and operate independently with renewable energy sources such as solar and biogas. Police and fire services will also be stationed onsite to ensure uninterrupted operations.
These parks will be strategically located near new agroecological zones along the Volta Basin, where integrated farming and agro-processing will be supported by irrigation systems from the Volta Lake.
The policy also outlines plans for urban farming clusters—including greenhouses—near major cities to cut food transport costs. Greenhouse farming will be prioritized in land-scarce communities.
The goal is to integrate production with logistics, reduce supply chain costs, and enable continuous economic activity day and night.
A $4 Billion Ambition
The policy is expected to cost $4 billion in its initial phase. The government has committed $300 million in seed capital, with the remaining 92% to be raised through public-private partnerships, led by the Ghana Infrastructure Investment Fund.
To support funding, a 2.5% import levy will be introduced on selected goods that can be produced locally, including processed foods, cosmetics, pharmaceuticals, cement, plastic household goods, second-hand clothing, sanitary pads, and diapers.
The government expects that increased production will offset revenue losses from tax incentives, although the policy document does not provide specific figures to support this claim. It also projects the creation of over 1.7 million jobs within four years, but lacks detailed projections on export growth, tax revenue, or employment by sector.
Implementation and Oversight
To ensure effective rollout, the government plans to pass legislation establishing a 24-Hour Economy Authority, chaired by the president. A pilot programme involving 50 companies will also be launched.
However, the document offers few details on implementation timelines, project sequencing, or fiscal risks. This raises concerns, especially when viewed against the backdrop of past initiatives like the One District, One Factory (1D1F) programme. Despite spending over GH¢500 million by the end of 2023, only 169 companies had received support, and many structural challenges remained unresolved.
The key distinction with the 24-hour policy is its legislative backing, which could make it more resistant to reversal by future governments.
The Road Ahead
Ghana has unveiled one of its most ambitious industrial reforms in decades. The incentives are bold, and the structural vision is compelling. However, the absence of concrete numbers leaves critical questions unanswered.
How will the government address potential revenue shortfalls? Will it resort to borrowing? What safeguards exist to ensure policy continuity beyond the next election?
The success of the 24-hour economy will depend on private sector buy-in and the government’s ability to honour its promises without creating loopholes.
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