Does Ghana’s 24-Hour Economy Policy Truly Work? An Analysis of K.T. Hammond’s Concerns

Introduction: Unpacking the 24-Hour Economy Debate in Ghana

The Government of Ghana’s proposal to transition into a 24-hour economy has ignited a national conversation about productivity, labor rights, and economic transformation. At the forefront of this debate is a critical examination of the policy’s practical implementation and its real-world impact on diverse sectors of the Ghanaian economy. Former Minister for Trade and Industry, Hon. Kobina Tahiru Hammond (K.T. Hammond), has emerged as a prominent voice questioning the policy’s foundational logic and operational feasibility. His scrutiny moves beyond political rhetoric to address fundamental questions: What does a “24-hour economy” actually mean for the average Ghanaian worker and business owner? Is the policy a coherent strategy for industrial growth, or a vague concept risking misinterpretation?

This article provides a comprehensive, pedagogical analysis of the 24-hour economy policy through the lens of K.T. Hammond’s reservations. We will explore the policy’s intended goals, dissect the legal and practical hurdles highlighted by Hammond, and offer a balanced perspective on how such a model could be structured for genuine economic advancement. The goal is to move past headlines and understand the intricate relationship between extended operating hours, industrial policy, labor regulations, and inclusive growth. For Ghana to leverage a round-the-clock economic model, clarity, stakeholder engagement, and robust legal frameworks are not optional—they are essential.

Key Points: Core Questions Raised by K.T. Hammond

• Conceptual Clarity: Hammond argues the policy, as explained, lacks a clear, operational definition, creating a risk of widespread public misunderstanding about what is actually being proposed.
• Sectoral Applicability: He directly questions whether the policy is intended to apply to the vast informal sector (e.g., market traders at Makola), suggesting this would be impractical and potentially exploitative.
• Labor Law Conflict: Hammond points to a direct conflict with existing Ghanaian labor laws, specifically the 8-hour workday limit, questioning how the policy reconciles with these legal protections for workers.
• Industrial Focus vs. Generalization: His central thesis is that a viable 24-hour economy must be driven by factories and large-scale industries implementing structured shift systems, not by a blanket expectation for all businesses to operate continuously.
• Job Creation Mechanism: Hammond links the policy’s success directly to its ability to create formal employment opportunities. He contends that shift-based expansion in manufacturing is the primary engine for achieving this, not extending hours for existing single-shop operations.
• Policy Alignment: He stresses that the policy must align with existing firm practices and structures. A top-down mandate without considering how different sectors function is destined for poor implementation.

Background: Ghana’s Proposed 24-Hour Economy Policy

The Policy Announcement and Stated Objectives

The concept of a 24-hour economy was prominently featured in the policy agenda of Ghana’s current administration. The core objective is to maximize productivity and economic output by encouraging businesses and public services to operate across all 24 hours of the day. Proponents argue this would:

• Boost national GDP through increased production and service delivery.
• Create more flexible employment opportunities, including night shifts.
• Improve efficiency in utilities and public service delivery (e.g., ports, hospitals, utilities).
• Position Ghana as a competitive, round-the-clock business hub in West Africa.

Existing Legal and Structural Framework

Any discussion of a 24-hour economy must be grounded in Ghana’s current legal reality. The primary legislation governing employment is the Labour Act, 2003 (Act 651). Key provisions include:

• Normal Working Hours: The standard workweek is 40 hours, typically structured as 8 hours per day for 5 days.
• Overtime: Work beyond the normal hours is considered overtime and must be compensated at a higher rate, typically at least 1.5 times the normal hourly rate, as agreed upon or stipulated.
• Night Work: The Act defines night work as work performed between 10 pm and 6 am. Workers are entitled to a night work premium or compensatory time off.
• Rest Periods: Workers are entitled to a minimum daily rest period of 12 consecutive hours and a weekly rest period.

These protections are designed to prevent worker exploitation and ensure health and safety. Implementing a 24-hour economy would inherently require businesses to schedule work during these legally protected “rest” periods, necessitating careful adherence to overtime and night work premiums.

The Informal Sector Dominance

A critical contextual factor is the structure of Ghana’s economy. The informal sector accounts for a significant portion of employment and economic activity, estimated by some institutions to employ over 70% of the workforce. This sector includes market traders (“market women”), small-scale artisans, tro-tro (mini-bus) operators, and countless micro-enterprises. Their operations are typically characterized by:

• Long, irregular hours already dictated by market demand and personal necessity.
• Lack of formal employment contracts or adherence to standardized labor laws.
• Direct ownership by the worker, meaning “working 24 hours” often means the individual proprietor working tirelessly, not creating an additional job for someone else.

Analysis: Deconstructing the Policy’s Practical Challenges

The “Who” and “How” of 24-Hour Operations

K.T. Hammond’s most potent critique targets the policy’s ambiguity regarding its subjects. A policy that says “the economy will run 24 hours” without specifying which economic activities and through what mechanisms is a slogan, not a strategy. His dichotomy between the informal trader and the formal factory is analytically crucial.

1. The Informal Trader Dilemma: For a trader at Makola or Kejetia, the decision to open for 24 hours is an individual business calculation based on expected sales versus security, utility, and personal labor costs. A government “policy” cannot force this. If it encourages it, the question becomes: with what support? Will there be 24-hour security patrols, guaranteed electricity, and extended banking hours for cash deposits? More importantly, Hammond’s concern about exploitation is valid. Encouraging a single mother who currently works 10-hour days to now work 24-hour shifts is not economic progress; it is a regression in human welfare. In the informal sector, “extended hours” often means the proprietor working more, not hiring additional staff for night shifts.

2. The Formal Factory Model: Hammond correctly identifies that the viable, job-creating model for a 24-hour economy is the shift system in manufacturing and large-scale services. This model is proven globally. A factory operating three 8-hour shifts (e.g., 6 am-2 pm, 2 pm-10 pm, 10 pm-6 am) achieves 24-hour production without requiring any single worker to exceed legal daily hour limits. This model:

• Creates Jobs: It directly increases the number of employees needed to cover all shifts.
• Increases Output: It multiplies the productive capacity of capital assets (machinery, plants).
• Requires Planning: It necessitates investments in shift management, supervision, security, canteen facilities, and reliable transport for night-shift workers.
• Aligns with Law: It can be structured to comply with the Labour Act’s provisions on overtime, night work premiums, and rest periods.

Labor Law: The Non-Negotiable Constraint

Hammond’s reference to labor laws preventing people from working more than 8 hours is a partial but important truth. The law does not prevent work beyond 8 hours; it regulates it through overtime and night work requirements. The policy’s success hinges on whether the government intends to:

• Option A: Encourage voluntary shift systems within the existing legal framework, where employers pay the required premiums. This is the standard industrial model.
• Option B: Advocate for amendments to the Labour Act to allow for longer continuous shifts or different premium structures, which would be highly controversial and face strong opposition from labor unions.
• Option C: Turn a blind eye to violations in the informal sector, leading to exploitation and undercutting of formal businesses that comply with the law—an unsustainable and unethical path.

The ambiguity surrounding this choice is the core of Hammond’s concern. A national policy must be explicit about which path it advocates.

Economic Theory: Productivity vs. Utilization

Economists distinguish between labor productivity (output per hour worked) and capacity utilization (the extent to which physical capital is used). A 24-hour economy primarily targets the latter. For Ghana, the constraint may not be the number of hours the economy is open, but the productivity of those hours. If a factory operates one 8-hour shift at 50% capacity due to power outages, machine breakdowns, or supply chain issues, moving to two or three shifts may yield diminishing returns. The policy must therefore be coupled with investments in:

• Reliable energy supply.
• Efficient transport and logistics networks (for night-time movement of goods).
• Improved security infrastructure.
• Skills training for supervisory and technical night-shift roles.

Without solving these foundational “binding constraints,” simply mandating longer hours could increase costs (overtime pay, night premiums) without a commensurate rise in output, harming competitiveness.

Practical Advice: Pathways to a Viable 24-Hour Economy

Based on the analysis, moving from a rhetorical 24-hour economy to a functional, equitable one requires a phased, sector-specific approach.

For Policymakers and Government

1. Define the Scope Clearly: Issue a white paper specifying that the initial focus is on facilitating shift systems in manufacturing, mining, ports, airports, hospitals, and large-scale agribusiness. Explicitly state that the policy is not a mandate for informal market traders or small retail shops to operate 24/7.
2. Conduct a Labor Law Review: Commission a tripartite review (government, employers, labor unions) of the Labour Act 2003 to assess if any amendments are needed to support structured shift work while protecting workers’ health and welfare. The default should be to enforce existing law, not weaken it.
3. Create Incentive, Not Just Mandate: Develop targeted fiscal and non-fiscal incentives for companies that establish certified multi-shift operations. This could include:
   • Tax breaks for capital investments in additional shift equipment or lighting.
   • Subsidized or guaranteed 24-hour power feeds for designated industrial zones.
   • Priority access to foreign exchange for importers of shift-production machinery.
   • Recognition and awards for “Model 24-Hour Enterprise.”
4. Invest in Enabling Infrastructure: Prioritize investments in street lighting on major industrial corridors, 24-hour public transport links to industrial areas, and enhanced police patrols in these zones.
5. Pilot Program: Launch a pilot in a specific industrial park (e.g., Tema Free Zone, Kumasi Industrial Area) to work with interested firms on implementing 3-shift systems. Document the challenges, costs, job creation numbers, and output increases to build an evidence base.

For Industry and Employers

1. Strategic Planning: Conduct a rigorous cost-benefit analysis of moving to multi-shift operations. Factor in all costs: overtime/night premiums, additional supervision, utilities, maintenance, and potential quality control issues.
2. Worker Welfare as Priority: Design shift schedules that comply with legal rest periods. Invest in safe transport for night-shift workers, provide adequate canteen facilities, and implement wellness programs to mitigate the health impacts of shift work.
3. Skills Development: Partner with training institutions like TVET schools to develop curricula for night-shift technical skills, supervisory skills, and logistics for 24/7 operations.
4. Technology Adoption: Leverage automation and IoT (Internet of Things) for monitoring and maintenance during off-peak hours to maximize the efficiency of 24-hour production.

For Workers and Labor Unions

1. Engage Proactively: Do not oppose the concept categorically. Engage in the tripartite discussions to ensure any shift-system rollout includes ironclad protections on wages, health, safety, and family life.
2. Negotiate Shift Differentials: Ensure collective agreements explicitly define and fairly compensate for night shift work and overtime, in line with or exceeding the Labour Act minimums.
3. Monitor Compliance: Vigorously monitor workplaces to prevent the exploitation of workers under the guise of a “24-hour economy.” Report violations to the Department of Labour.

FAQ: Addressing Common Questions

Q1: Is Ghana’s 24-hour economy policy meant to force everyone to work 24 hours a day?

A: No. The intent, based on government statements, is to create an environment where economic activity can occur at any hour to boost productivity. K.T. Hammond’s questioning clarifies that this should not be misinterpreted as a requirement for individual informal workers to work around the clock. The viable model is structured shift work in large establishments, which distributes hours across multiple employees.

Q2: Doesn’t the Labour Act already allow for night shifts and overtime?

A: Yes, it does. The Act (651) provides the legal framework for work beyond the standard 8-hour day, mandating overtime pay and night work premiums. A functional 24-hour economy in the formal sector would operate within</