Understanding a 24-Hour Economy: The Vision of H.E. President John Mahama

Regardless of whether you are in Ghana or abroad, and irrespective of your political affiliation, it is clear that the country is facing significant challenges. If these issues are not addressed collectively, we risk facing dire consequences together. In the past seven and a half years, Ghana has faced significant issues such as corruption, nepotism, cronyism, intimidation, economic instability, and environmental degradation due to illegal mining activities (galamsey). These challenges have had profound effects on the socio-economic fabric of the country, raising concerns about the future and well-being of its citizens.

Given Ghana's current challenges of rampant corruption, high inflation, escalating costs of living, high unemployment rates, and significant depreciation of the Cedi, the need for a visionary leader has never been more pressing. Visionary leadership in countries like Singapore under Lee Kuan Yew transformed the nation from a developing country to a global financial hub through meticulous long-term planning and policy implementation. And I believe our only bet now is President John Dramani Mahama.

A visionary leader like Mr. Mahama, is critical for Ghana’s economic development as he will provide strategic direction, foster innovation, build infrastructure, attract investment, develop human capital, strengthen governance, and promote inclusive growth. By focusing on long-term goals and sustainable development, Mr. Mahama can transform Ghana into a thriving and competitive economy on the global stage. It is upon this that most good economists see his proposed 24-hour economy as strategic alliances that can salvage Ghana from its economic doldrums. A 24-hour economy proposed by His Excellency John Dramani Mahama is one of the best economic plan yet to happen in Ghana. The deteriorating state of Ghana that is going to be left over by President Nana Akufo-Addo and his Vice, Dr. Mahamudu Bawumia, would need a visionary leader who would pick up the pieces together and bring Ghana back to the track.

A 24-hour economy has the potential to significantly boost Ghana’s economic growth, enhance public services, and improve the quality of life for its citizens. Drawing lessons from global examples, careful planning, investment in infrastructure, and addressing regulatory challenges are crucial for successfully implementing a 24-hour economy in Ghana. A 24-hour economy refers to a socio-economic system where businesses, services, and activities operate continuously around the clock. This concept is aimed at maximizing productivity and convenience by extending traditional business hours. Several cities globally, including those in Australia, Belgium, London, Canada, and the USA, have adopted or are exploring 24-hour economies with varying degrees of success.

In the case of Australia with reference to Sydney and Melbourne, these cities have developed strategies to support 24-hour economies, especially in nightlife and entertainment. Policies include extended trading hours for bars, restaurants, and public transport services running late into the night. The benefits of the 24-hour economy in these cities have been shown to boost tourism, create jobs, and increase revenue for local businesses.

In Belgium using Brussels as the test case. The capital city, which also doubles as the European Union Capital, has seen a rise in 24-hour operations in sectors like healthcare, transportation, and certain retail areas. Public services, including transport and emergency services, are available round the clock. The benefits are the enhanced public safety and improved convenience for residents and visitors are significant outcomes.

In the United Kingdom, Sadiq Khan, the Mayor of London, introduced the 24-hour Night Tube service in August 2016. This initiative was a major step toward developing a continuous economy, allowing the city to operate more efficiently around the clock. This vision focuses on extending the operational hours of key services, supporting nightlife and entertainment sectors, and ensuring that transportation and safety measures are in place to support these activities. According to an economic impact assessment by Transport for London (TfL), the Night Tube only contributed an additional £12 million revenue annually. A report by the London First and EY in 2018 estimated that London’s night-time economy worth as much as £26 billion a year by 2030, highlighting the long-term potential of 24-hour operations.

In Toronto, Canada, some sectors, particularly in entertainment and essential services, operate 24/7. The city has seen a gradual shift towards more round-the-clock services, which saw an increased flexibility for workers and consumers and a more vibrant night-time economy. While in New York City, also known as "the city that never sleeps," New York has a well-established 24-hour economy. From dining to shopping and public services, many sectors operate continuously. The benefits are significant economic contributions from tourism, enhanced public safety, and a dynamic cultural scene .

1. What are potential benefits of 24-hour Economy for Ghana?

Implementing a 24-hour economy in Ghana could bring multiple advantages, similar to those observed in other countries listed above.

a) Economic Growth.
Extending operating hours for businesses can lead to higher productivity and revenue. A 24-hour economy can create numerous jobs, particularly in sectors like transport, hospitality, retail, healthcare, and security. This can help reduce unemployment rates and provide flexible working hours for those who need it. A 24-hour economy can also improve the quality of life by providing more flexibility in access to services and entertainment, catering to diverse lifestyles and work schedules. Embracing a 24-hour economy can drive innovation, particularly in sectors like IT and logistics, to support continuous operations. Continuous operation of services like healthcare, transport, and retail can improve the quality of life for residents. If this initiatives take place in Accra and the big cities, Ghana’s position as a leading global country can be strengthened by offering a dynamic and flexible economic environment, attracting international businesses and investors. A vibrant night-time economy can attract tourists and boost the hospitality industry. With more people and services active at night, cities can become safer with increased surveillance and reduced crime rates. Increased activity and the presence of services around the clock can enhance public safety, as streets and public spaces are more populated and monitored.

b) Urban Development.
Implementing a 24-hour economy requires investments in infrastructure, such as improved lighting, enhanced public transport, and robust security systems, leading to overall urban development. Ensuring that night workers have access to necessary services, such as transportation and safety measures, can make nighttime employment more attractive and sustainable. At the same time, with businesses operating around the clock, there is potential for increased demand for commercial real estate, leading to growth in the property market.

2. What are incentives for Ghana Government?

A 24-hour economy can boost tax revenues from extended business operations. More business activities mean more sales and income taxes collected. Enhanced nightlife and 24-hour services can attract tourists, increasing tourism-related revenues. And more jobs are created to cover the extended hours, reducing unemployment and increasing income tax revenue.

Implementing a 24-hour economy necessitates investments in infrastructure like improved lighting, transportation, and security systems, leading to overall urban development. And with more people active around the clock, there can be increased surveillance and reduced crime rates, contributing to a safer environment. Continuous service delivery such as healthcare, emergency response, and public transportation can operate continuously, improving public welfare and efficiency.

3. Analysing the incentives for companies and setups

Whether as corporation, or small and medium size enterprise, there can be increased revenue and market Expansion under 24-hour economy. Here are the analysis:

1. In an extended operating hour, businesses can increase sales by operating longer hours, catering to more customers.
2. Being open 24 hours can differentiate businesses from competitors, attracting a new segment of customers who require services outside traditional hours.
3. Establishments can optimise their workforce through shifts, ensuring efficient use of resources and facilities.
4. For businesses engaged in global trade, operating 24 hours can facilitate better communication and transactions with international partners across different time zones.
5. The need for around-the-clock services can drive innovation in business models, leading to new products and services.
6. This will also enhanced customer satisfaction where meeting customer needs at any time can significantly improve customer satisfaction and loyalty.

4. What are the incentives for workforce in operating 24-hours?

1. A 24-hour economy creates more job opportunities, particularly in sectors like retail, hospitality, healthcare, and transportation.
2. Workers can benefit from flexible scheduling, allowing for better work-life balance and accommodation of personal needs.
3. Employees working during non-traditional hours often receive higher pay through overtime and shift differentials, increasing their overall earnings.
4. More part-time jobs can be created, providing additional income sources for those unable to work full-time.
5. Working in a 24-hour economy can offer diverse experiences and skill development opportunities, enhancing career growth and employability.
6. The need for continuous operations can lead to higher demand for specialized skills, encouraging workforce training and development.

Conclusion
Implementing a 24-hour economy offers significant incentives for governments, companies, and the workforce. Governments benefit from economic growth, increased revenue, and improved public services. Companies can enhance revenue, operational efficiency, and customer satisfaction. While the workforce enjoys more job opportunities, flexible work hours, and increased earnings. While the transition to a 24-hour economy requires careful planning and investment, the potential benefits make it a compelling strategy for economic and social development.

Written by,
Lewis Kwame Addo (LLM)
Amsterdam