Ghana Pursues $4 Billion Funding to Implement Round-the-Clock Economy, Commits Initial $300 Million Backing
The Ghanaian government has launched an ambitious 24-Hour Economy program, spearheaded by President John Dramani Mahama, with the aim of transforming the country's economic landscape by promoting round-the-clock productivity across key sectors[1][2][5]. The program, announced in 2023, seeks to address core issues such as unemployment, inflation, and high public debt.
## Funding and Structure
The government has set a target of raising $4 billion over the next four years to fund the initiative, with an immediate $300 million allocated as seed capital for businesses and individuals participating in the program[1][3][4]. The remaining 92% of funding is expected to be mobilized through partnerships with commercial banks, development finance institutions, and other private sector actors, led by the Ghana Infrastructure Investment Fund[2][4].
A 2.5% import levy will be imposed on locally producible goods to boost local production and generate funds for the program[4]. The initiative is adopting a blended finance model, combining public funds with private investment to maximize reach and impact[5].
## Implementation and Oversight
The government has emphasized that it will facilitate, not dominate, the initiative. Its role is to create a conducive environment, with most enterprise financing expected to come from the private sector[2]. An independent 24-Hour Plus Authority will be established to oversee implementation, operating separately and reporting directly to the President[2][4].
"Fund 24" will provide credit guarantee schemes to help businesses access capital, overcome collateral challenges, and secure longer loan terms[2]. The plan includes major infrastructure projects such as modern ports, logistics for transporting fresh produce from Tamale to Europe, and job creation through aquaculture along the Volta Lake[2].
## Expected Outcomes and Progress
The program aims to create 1.7 million jobs within four years[1][4]. The initiative targets integration of production and logistics, aiming to reduce supply chain costs and enable continuous economic activity throughout the day and night[4]. By stimulating exports and expanding opportunities across multiple sectors, the government hopes to foster a more productive, job-rich, and export-driven economy[2][5].
A pilot program involving 50 companies is planned, providing a testbed for the wider initiative[4]. The government has officially launched the program and begun organizational steps, including the creation of a new oversight authority and the rollout of a pilot project. Efforts are underway to secure funding and define frameworks for private sector participation and infrastructure development.
## Challenges and Uncertainties
While the $4 billion target has been announced, the program’s policy document lacks detailed projections for employment, export growth, or tax revenue, raising questions about concrete outcomes and execution feasibility[4]. The program is being launched amid ongoing challenges, including high inflation (23% in November 2024), public debt restructuring, and unemployment (reported at 3.1% in 2023 by the World Bank)[1].
The government has not released details on the impact of these reforms on Ghana's economic recovery, unemployment rate, or inflation. The complete economic policy document for the 24-Hour Economy will be presented to Parliament following its official launch on July 2.
In conclusion, Ghana's 24-Hour Economy program represents a significant step towards economic transformation. The initiative, with its focus on job creation, infrastructure development, and private sector participation, offers a promising approach to addressing Ghana's economic challenges. However, the program's success will depend on its ability to secure funding, navigate ongoing economic difficulties, and deliver on its ambitious job creation and economic growth targets.
The government is raising $4 billion over the next four years to fund the 24-Hour Economy program, with a portion allocated to businesses and individuals participating in the initiative, and the remaining funds expected to come from partnerships with commercial banks, development finance institutions, and other private sector actors.
The 24-Hour Economy program, aimed at creating 1.7 million jobs within four years, adopts a blended finance model, combining public funds with private investment to maximize reach and impact, and a 2.5% import levy will be imposed on locally producible goods to boost local production and generate funds for the program.
