A lecturer at the University of Ghana Business School (UGBS), Professor Lord Mensah has endorsed the National Democratic Congress’s 24-hour economy policy, underscoring its benefit to the country when implemented.
Professor Mensah, while assessing the policy, emphasized the significant positive impact such a policy could have on the country’s economic growth, employment, and overall infrastructure utilization.
Prof. Lord Mensah’s analysis provides a compelling case for why Ghana should consider extending its economic operations beyond the conventional 8 to 12 hours. Professor Mensah began by highlighting the limitations of Ghana’s current economic structure, which operates predominantly within an 8 to 12-hour window.
Prof. Mensah argued that this limited timeframe restricts the nation’s economic output, and extending operations to a 24-hour economy could substantially boost the Gross Domestic Product (GDP).
“If you look at an economy that is operating 8 to 12 hours and you’re recording a GDP of [about] 800 billion Ghana cedi’s, then having extended hours going into 24 hours, tells me that you can add on to the GDP that we have.”
Professor Lord Mensah Lecturer of University Business School (UGBS)
Meanwhile, Prof. Mensah acknowledged that not all sectors would be able to operate 24 hours. He then emphasized that even a partial implementation could yield significant results. Prof. Mensah further projected that adding even a quarter of the current economic output during nighttime operations would contribute notably to the country’s growth. “
“The economic output is going to increase…because if you look at… adding a quarter of the current economic output it should go a long way to increase the growth in our economy.”
Professor Lord Mensah Lecturer of University of Ghana Business School (UGBS)
Employment Opportunities
Beyond economic growth, Professor Mensah also pointed out the potential for job creation as a key benefit of a 24-hour economy. He observed that youth unemployment is a pressing issue in Ghana, with many young people seeking employment opportunities. Prof. Mensah highlighted that the introduction of a 24-hour economy could provide these much-needed jobs, particularly in sectors that can operate around the clock.
“We are struggling and the youth these days, the target that they’re looking out for is employment. Nothing short of that.”
Professor Lord Mensah Lecturer of University of Ghana Business School (UGBS)
Moreover, he suggested that if existing structures were to operate 24 hours, it would necessitate the hiring of more workers, thereby addressing some of the unemployment challenges.
“If you are going to have existing structures that can operate 24 hours and then add on more jobs that will be something to go all out for.”
Professor Lord Mensah Lecturer of University of Ghana Business School (UGBS)
Optimal Infrastructure Utilization
Professor Mensah further pointed out the underutilization of infrastructure that has been developed through borrowed funds. He pointed out that Ghana has invested heavily in infrastructure through loans, and it is crucial to ensure these facilities are used optimally.
He cited the Ridge Hospital as an example, arguing that operating such facilities for only 8 to 12 hours a day represents an underutilization of resources.
“We cannot continue to operate these infrastructures for only 8 to 12 hours. We may be underutilizing the facility.”
Professor Lord Mensah Lecturer of University of Ghana Business School (UGBS)
This position seeks to underscore the point that a 24-hour – economy in Ghana could maximize the return on its investments in infrastructure, thereby justifying the borrowed funds and contributing further to economic growth.
Professor Mensah suggested that a policy shift towards a 24-hour economy could effectively achieve this optimal utilization.
However, Professor Mensah cautioned that the success of such a policy would depend heavily on the involvement of the private sector and the creation of a conducive macroeconomic environment.
He stressed that the government alone should not own or drive the policy. Instead, it should work in tandem with the private sector, which is the largest employer in the country.
“It’s not a policy that I’m expecting the government to own all by itself. It should be a policy that will go hand in hand with the private sector.”
Professor Lord Mensah Lecturer of University of Ghana Business School (UGBS)
Professor Mensah highlighted the importance of favorable interest rates, lending rates, and ease of doing business. He argued that the government must provide an enabling environment for the private sector to thrive, as this would determine the level of private sector participation in the 24-hour economy.
“We need to look at the macroeconomic environment… interest rates, lending rates… and ease of doing business.”
Professor Lord Mensah Lecturer of University of Ghana Business School (UGBS)
Professor Mensah articulated a strong case for the adoption of a 24-hour economy in Ghana. He believes that such a policy could significantly enhance economic growth, create employment opportunities, and ensure the optimal utilization of infrastructure.
However, he emphasized the importance of private sector involvement and the need for a supportive macroeconomic environment. If these factors are carefully managed, the introduction of a 24-hour economy could be a transformative policy for Ghana, contributing to sustained economic growth and improved livelihoods for its citizens.
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