Alliance For Civic Action (ACA) Press Release: A Call for a 24-Hour Economy to Transform Ghana’s Future

Ghana stands at a crossroads, facing one of its most significant economic challenges in recent decades. With inflation soaring above 40%, high levels of unemployment, a depreciating cedi, and mounting debt estimated at over 70% of GDP, it is time for solutions that tackle these issues at their core. While digitalization has brought efficiency gains, we at the Alliance for Civic Action (ACA) believe that John Mahama’s proposed 24-hour economy policy offers a truly transformative approach to our current economic crisis, far surpassing digitalization promises in addressing Ghana’s urgent needs.

1. Digitalization: An Ongoing Initiative, Not a Revolutionary Solution

Digitalization has been an ongoing evolution in Ghana. From the Ghana Card to mobile money interoperability, previous administrations, including John Mahama’s, laid the foundation for digital advances, making it a continuation rather than a unique promise. Given the global momentum toward digital transformation, Ghana’s digital evolution will naturally persist, driven by both public and private sectors. However, this does not directly address the country’s immediate economic crisis.

2. The 24-Hour Economy: A Structural Transformation

The 24-hour economy proposed by John Mahama, on the other hand, presents an entirely new approach that would increase productivity, drive economic growth, and alleviate unemployment. Operating key sectors—manufacturing, healthcare, retail, transportation, and logistics—around the clock can provide substantial economic benefits, creating a cycle of growth that digitalization alone cannot achieve.

3. How a 24-Hour Economy Addresses Ghana’s Current Economic Woes

Debt Management and Revenue Growth
Ghana’s debt-to-GDP ratio currently stands at alarming levels, above 70%, with national revenue falling short of meeting debt obligations. By increasing economic activity through a 24-hour operation, Ghana can generate more revenue across sectors, potentially adding billions of cedis in GDP growth over time. This additional revenue could lessen our debt burden and reduce our reliance on external loans.

Job Creation and Lower Unemployment
Youth unemployment remains high, with approximately 12% of young Ghanaians lacking employment. A 24-hour economy would create diverse employment opportunities by operating multiple shifts, immediately addressing job scarcity. Sectors such as retail, healthcare, security, and transportation would need more workers, reducing unemployment and uplifting the economy.

Controlling Inflation and Stabilizing the Cedi
A 24-hour economy could stabilize inflation by increasing production and lowering costs through economies of scale. More products and services available round-the-clock would reduce inflationary pressures. Additionally, with increased productivity, Ghana’s reliance on imports could decline, stabilizing the cedi and improving exchange rates.

Comparative Figures

Unemployment: Current rate at approximately 12%; projected reduction by 3-5% within the first five years of a 24-hour economy implementation.

Debt-to-GDP Ratio: Currently above 70%; increased GDP through a 24-hour economy could reduce the debt ratio by generating internal revenue and decreasing the dependency on loans.

Inflation Rate: Currently over 40%; by increasing domestic production and minimizing import reliance, inflation could be contained to manageable levels.

Exchange Rate: The cedi has depreciated significantly against the dollar. With increased exports and decreased import reliance, we could stabilize the exchange rate, lessening the cedi’s vulnerability.

4. Digitalization as a Support Mechanism, Not the Core Solution

Digitalization remains an essential part of a modern economy but should act as a supportive tool within the 24-hour economic framework. The ongoing digital systems, such as mobile payments and digital ID systems, will support the 24-hour economy by increasing efficiency but cannot independently drive economic growth or job creation.

5. Why Ghana Needs the 24-Hour Economy Now

In a country facing a mounting debt crisis, high inflation, and an employment crisis, we need policies that provide real, immediate solutions. The 24-hour economy is a visionary yet pragmatic policy designed to drive economic stability and growth. Ghana’s challenges require an economic shift that can bring tangible results across all sectors, from industry to services, creating jobs, stabilizing the cedi, and reducing our debt.

Conclusion: Choose Transformation Over Continuation

The Alliance for Civic Action calls on all Ghanaians to critically examine the options before us. While digitalization is a necessary process that will continue regardless of leadership, the 24-hour economy presents a once-in-a-generation opportunity to transform Ghana’s economic structure fundamentally. We urge you to support a policy that aligns with Ghana’s current economic needs and to choose the future that a 24-hour economy promises—a Ghana that works for all, around the clock.