Ghana's 24-Hour Economy Policy Under Scrutiny as Opposition Calls for Return to One District, One Factory Initiative

Key Takeaways

• The Ranking Member on Parliament's Economy and Development Committee, Kojo Oppong Nkrumah, has urged the government to revisit the 24-Hour Economy policy and return to the One District, One Factory (1D1F) initiative.
• Oppong Nkrumah cited official data from the National Development Planning Commission (NDPC) showing that at least 150 factories were operational under 1D1F before the programme was suspended.
• The government's decision to scrap 1D1F has yielded no tangible results, nearly two years into the administration.
• Youth unemployment has risen to approximately 32.4 per cent, according to data from the Ghana Statistical Service.

The Ghanaian government's 24-Hour Economy policy has come under intense scrutiny, with the Ranking Member on Parliament's Economy and Development Committee, Kojo Oppong Nkrumah, urging the administration to revisit the initiative and return to the One District, One Factory (1D1F) programme. Oppong Nkrumah made the call while seconding a motion for the House to adopt the Committee's report, citing official data from the National Development Planning Commission (NDPC) that showed at least 150 factories were operational under 1D1F before the programme was suspended.

The former Information Minister argued that the government's decision to scrap 1D1F and replace it with the 24-Hour Economy has yielded no tangible results, nearly two years into the administration. He drew attention to the impact on the automotive industry, noting that under the 1D1F policy architecture, incentives were provided to automobile companies for local assembly of cars. However, these incentives were suspended as part of the reset, resulting in complaints from the industry that the incentive is gone.

Background & Context

The One District, One Factory (1D1F) initiative was launched in 2017 with the aim of transforming the Ghanaian economy through industrialization. The programme provided incentives to private sector companies to establish factories in various districts across the country, with a focus on creating jobs and stimulating economic growth. However, the programme has been marred by controversy and criticism, with some arguing that it has not delivered the expected results.

The 24-Hour Economy policy, on the other hand, was introduced as a replacement for 1D1F. The policy aims to create a 24-hour economy through the introduction of night shifts in various industries, including manufacturing and services. However, critics argue that the policy has not delivered the expected results, with no new factories established and no significant increase in economic activity.

Key Findings

A key finding of the Committee's report is that the government's decision to scrap 1D1F and replace it with the 24-Hour Economy has yielded no tangible results. The report notes that youth unemployment has risen to approximately 32.4 per cent, according to data from the Ghana Statistical Service. This has significant implications for the Ghanaian economy, with the opportunity cost of not having an industrial policy in place estimated to be in the hundreds of thousands of young Ghanaians who are sitting at home without jobs.

The report also notes that the 24-Hour Economy policy has not delivered the expected results, with no new factories established and no significant increase in economic activity. The Committee recommends that the government revisit the 1D1F programme and correct any errors that may have contributed to its failure.

Broad Implications

The implications of the Committee's report are far-reaching, with significant implications for the Ghanaian economy and the lives of its citizens. The report highlights the need for a robust industrial policy that creates jobs and stimulates economic growth. It also underscores the importance of learning from past mistakes and correcting errors in order to achieve success.

The report's findings have significant implications for the government's economic agenda, with the opposition calling for a return to the 1D1F programme. The government will need to carefully consider the report's recommendations and take decisive action to address the issues highlighted in the report.

Looking Ahead

The Ghanaian government will need to take a comprehensive approach to addressing the issues highlighted in the Committee's report. This will require a robust industrial policy that creates jobs and stimulates economic growth, as well as a commitment to learning from past mistakes and correcting errors. The government will need to work closely with the private sector, civil society, and other stakeholders to achieve success.

The future of the 24-Hour Economy policy remains uncertain, with the opposition calling for a return to the 1D1F programme. The government will need to carefully consider the report's recommendations and take decisive action to address the issues highlighted in the report. The outcome will have significant implications for the Ghanaian economy and the lives of its citizens.