The Transformative Impact of a 24-Hour Economy in Ghana and Beyond - Mr Setsoafia Dzakpasu breakdown John Mahama’s initiative

The emergence of the 24-hour economy concept represents a paradigm shift in economic thinking, challenging the traditional 9-to-5 business model.

This innovation is especially relevant in the African context, where nations like Ghana are exploring new avenues for economic growth and development. The potential of a 24-hour economy in driving long-term growth, alleviating poverty, and nurturing an entrepreneurial culture, particularly among the youth, is immense.

Ghana, with its growing urban centres and youthful population, serves as an ideal case study to explore these possibilities. By analysing the experiences of other countries that have successfully implemented a 24-hour economy, we can gain valuable insights into the long-term benefits and challenges of this economic model.
Long-Term Economic Benefits and Poverty Reduction

The transition to a 24-hour economy could mark a significant turning point for Ghana’s economic trajectory. This model offers several long-term benefits:

1. Increment in GDP: The most immediate impact of a 24-hour economy is an increase in economic productivity. Businesses operating round-the-clock can optimize resource utilization, leading to higher output and efficiency. This continuous operation model not only benefits sectors like manufacturing and services but also invigorates ancillary industries such as logistics and security services. The cumulative effect of these changes can result in a substantial increase in Ghana's GDP, signalling robust economic health.

2. Poverty Reduction: One of the most compelling arguments for a 24-hour economy is its potential to significantly reduce poverty. By offering extended operational hours, businesses can create more employment opportunities, thereby lowering unemployment rates. This is particularly crucial in urban areas, where the influx of job-seekers often outstrips job availability. The extended hours mean more shifts and flexible work options, allowing a larger segment of the population to find gainful employment. Moreover, a 24-hour economy can stimulate the growth of small and medium- sized enterprises (SMEs), which are key drivers of employment and poverty reduction.


3. Enhanced Quality of Life: Beyond economic metrics, a 24-hour economy can improve the quality of life for citizens. With services available around the clock, people can access healthcare, banking, and retail services at their convenience, leading to a more balanced and less stressful lifestyle. This flexibility can be particularly beneficial for working parents, students, and the elderly.


4. Urban Development and Infrastructure Utilization: A 24-hour economy can lead to more efficient use of urban infrastructure. Roads, public transport, and utilities that are less utilized at night can serve more people, reducing pressure during peak hours and extending the lifespan of public assets. This efficient use of infrastructure can contribute to sustainable urban development.


5. Boost to Tourism and International Trade: For a country like Ghana, with a growing tourism sector, a 24-hour economy can make the country more attractive to tourists by offering a wider range of activities and services. Additionally, operating on a 24/7 schedule allows for better alignment with different time zones, facilitating international trade and attracting foreign investment.


Fostering Entrepreneurship Among Youth

In Ghana, the youth are the backbone of innovation and economic progress. A 24-hour economy can serve as a fertile ground for young entrepreneurs. The extended hours provide flexibility for startups and small businesses to operate beyond conventional time constraints, allowing them to experiment with new business models and reach wider markets.

This continuous operation model can foster a culture where the youth can innovate and experiment with night-time economies, tech startups, and creative industries. Moreover, a 24-hour economy aligns with the digital lifestyle of the youth, enabling them to leverage online platforms for commerce and services at any hour.


Case Scenarios of Successful 24-Hour Economies

1. New York City, USA: New York’s example is particularly relevant for Ghana. The city’s thriving night economy, encompassing everything from 24-hour diners to night-time financial services, illustrates how diverse sectors can benefit. The city’s economy benefits from a mix of tourism, entertainment, and round-the-clock services, showing the potential for job creation and economic diversification.


2. Tokyo, Japan: Tokyo is a prime example of how technological advancements and a 24-hour operational framework can coalesce to create an efficient and productive economy. Its 24-hour convenience stores, tech companies, and transportation services demonstrate the benefits of continuous operations, particularly in enhancing productivity and service delivery.
Justification for a 24/7 Economy in Ghana


1. Economic Resilience: Ghana’s economy, transitioning to a 24/7 operational model, can become more adaptable and resilient. This model ensures that economic activities are not halted by traditional closing hours, making the economy more robust against global economic fluctuations and local challenges like power outages or natural disasters.


2. Global Competitiveness: For Ghana to compete on a global stage, especially in sectors like information technology, finance, and customer service, synchronization with different time zones is crucial. A 24-hour economy facilitates this global integration, allowing Ghanaian businesses to operate in real-time with partners and clients across the world.

Analytical Evaluation and Triangulation

- Economic Data Analysis: A critical analysis of economic data from countries that have adopted a 24-hour economy reveals positive trends in GDP growth, employment rates, and poverty reduction. This data provides a benchmark for predicting the potential impact in Ghana.


-Triangulation with Other Economies: By examining the experiences of countries like the United States and Japan, Ghana can adopt best practices and avoid pitfalls experienced by these economies during their transition to a 24-hour operational model.
Extrapolation and Critiquing

- In Favor: Advocates of the 24-hour economy argue for its potential to create a more dynamic and
inclusive economic environment, offering opportunities across various sectors and demographics.

- Against: Critics point to potential drawbacks like increased operational costs for businesses, the impact on workers’ health and social lives, and the need for enhanced security and infrastructure to support night-time operations.
Evidence-Based Analysis

Using empirical data from cities with established 24-hour economies provides a realistic preview of what Ghana might expect. This data includes metrics on job creation, economic diversification, and shifts in consumer behaviour. Such an analysis will help in making informed decisions and implementing strategies that maximize benefits while mitigating risks.


The transition to a 24-hour economy in Ghana represents a pivotal moment in the country's economic evolution. This ambitious shift promises to not only accelerate economic growth but also foster a spirit of innovation and entrepreneurship, particularly among the youth. Drawing lessons from successful global models, Ghana can harness this opportunity to enhance its global competitiveness and position itself as a leader in Africa's economic transformation.

While the benefits, including substantial GDP growth, poverty reduction, and the nurturing of an entrepreneurial culture, are compelling, Ghana must navigate a range of challenges. These include the need for robust infrastructure, enhanced security measures, and comprehensive policy support. The implementation of this model requires a balanced, evidence-based approach, informed by the successes and pitfalls experienced by other countries.

Ultimately, embracing a 24-hour economy could significantly transform Ghana's societal and cultural landscape, leading to a more vibrant, diverse, and inclusive future. This economic model holds the promise of not just economic dividends but also a redefined way of life, potentially setting a precedent for other African nations. By adapting global best practices to its unique context, Ghana can effectively leverage the 24-hour economy to boost its economic development and improve the quality of life for its citizens.


References
1. “The Economics of 24-Hour Cities,” by J. S. Thompson, Urban Studies Journal, 2022.
2. “Ghana’s Economic Outlook: Prospects and Challenges of a 24-Hour Economy,” by A. K. Osei, Ghana Economic Review, 2023.
3. “Global Patterns in 24-Hour Economies and Their Lessons,” by M. N. Patel, International Journal of Economic Development, 2024.