Ghana’s 24‑Hour Economy Pivot: SMEs Targeted to Boost Quality Jobs

Key Takeaways

• Government urged to place SMEs at the core of the 24‑hour economy.
• Policy shift aims to generate net job growth and improve job quality over the next two years.
• SME focus complements earlier large‑scale investment drives stemming from the 48 Development Plan.
• Addressing underemployment and low‑skill work is highlighted as a parallel priority.

Dr Nii Moi Thompson, chair of the National Development Planning Committee, called for a decisive shift toward small and medium‑sized enterprises as the engine of Ghana’s 24‑hour economy. He argued that smaller firms can deliver employment gains more quickly than capital‑intensive projects that require longer gestation periods.

The remarks, made on Joy News’ PM Express, signal a strategic recalibration that seeks to balance the creation of new jobs with the improvement of existing work, reflecting persistent concerns about underemployment and job quality across the country.

Background & Context

The 24‑hour economy concept emerged from the unfinished 48 Development Plan, a broad framework that introduced several institutional reforms, including the Ministry of Sports and Recreation and the proposed Ghana Agency for Development Cooperation. While the plan emphasized large‑scale investment, its implementation has been uneven, prompting policymakers to revisit the balance of economic drivers.

Historically, Ghana’s growth strategy has leaned on foreign direct investment in sectors such as mining and oil. Those sectors generate high‑value output but often require years before job creation materializes, a lag that has left the labour market vulnerable to cyclical downturns.

Why SMEs Matter for Job Creation

SMEs account for roughly 80 % of Ghanaian enterprises and employ a majority of the formal workforce. Their agility allows them to adapt to market shifts, absorb surplus labour, and foster entrepreneurship, all of which are critical for narrowing the gap between job creation and loss.

Empirical studies from comparable economies show that a 1 % increase in SME activity can translate into a 0.5 % rise in net employment, especially when credit access and regulatory burdens are eased. In Ghana, underemployment remains a structural issue; enhancing the quality of existing jobs through skills development and productivity incentives can mitigate this risk.

Policy Implications and Implementation

Thompson’s call for a dual focus—new jobs and job quality—implies a suite of policy instruments: targeted financing schemes for micro‑enterprises, streamlined licensing, and a national skills audit to align curricula with SME needs. Coordinated effort between the Ministry of Trade and the Ghana Investment Promotion Centre will be essential to avoid duplication of incentives.

Monitoring mechanisms must also evolve. Traditional employment metrics count headline job numbers, but a more nuanced index that weighs wage levels, contract stability, and skill acquisition will better capture the net impact of SME‑driven growth.

Looking Ahead

If the government operationalises these recommendations within the next two years, the 24‑hour economy could transition from a largely symbolic agenda to a measurable catalyst for inclusive growth. Success will depend on sustained political will, data‑driven oversight, and the capacity of SMEs to scale responsibly.

Even as large projects continue to mature, a balanced portfolio that elevates SMEs promises to address both unemployment and the chronic underemployment that has constrained Ghana’s productivity gains.