Augustus Goosie Tanoh, the Residential Advisor on the 24-Hour Economy and Accelerated Export Development, has put forth an inspiring vision for the economic transformation of Ghana.
At a post-budget workshop held on Sunday, he shared insights into President John Dramani Mahama’s flagship economic initiative, the Trade Power Economy and the Export and Government Program.
This ambitious program focuses on restructuring Ghana’s economy by emphasizing production, boosting exports, and creating jobs.
He indicated that the concept of a 24-hour economy aims to foster inclusivity, ensuring that all citizens can benefit from economic activities at any time of day.
He said, “This vision serves as a proactive response to Ghana’s structural economic challenges, promoting continuous and efficient economic engagement.”
This holistic approach not only addresses existing issues but also lays the foundation for a more resilient and dynamic economic future for the country.
Goosie Tanoh presented economic data from 1996 to 2024, highlighting Ghana’s growing dependence on services while manufacturing and agriculture have steadily declined. Crops, once a 32% contributor to GDP, now account for only 20%, and manufacturing has slipped from the third to the fourth-largest contributor.
He said, “If you look at the growth path of our economy, GDP has been rising, but job creation is declining relative to GDP growth. That is a fundamental problem.”
“We cannot continue to rely on an economy where 85% of our exports are primary commodities with little to no value addition.”
One of the key concerns that Mr.Tanoh pointed out is Ghana’s unsustainable import dependence. The country spends $2.4 billion annually on food imports, including $350 million on poultry products alone.
He stated that the economy is structured in a way that makes it heavily reliant on imports—even for necessities like rice, poultry, and cooking oil.
“This trend must be reversed if we are to build a resilient economy that supports local businesses and creates sustainable jobs,” he said.
The 24-Hour Economy and Accelerated Export Development Program is built on three key pillars: Production Transformation, Market Systems Enhancement, and Human Capital Development.
1. Production Transformation
Tanoh emphasized the need to break the colonial export model by developing an integrated domestic manufacturing system that utilizes local inputs. Currently, 50% of manufacturing inputs are imported, making production costly and uncompetitive.
“We must reduce our dependence on imported inputs and create value within our borders. This means expanding local production, processing raw materials into finished goods, and ensuring that Ghanaian-made products are competitive both locally and internationally,” he urged.
2. Market Systems Enhancement
The vision also aims to develop integrated and efficient market systems that connect producers to consumers, minimize transaction costs, and enhance export competitiveness.
According to him, Ghanaian farmers struggle because the supply chain is inefficient. The cost of moving products from the farm gate to the point of export is too high.
“If we are serious about competing with foreign products, we must improve our logistics, storage, and transportation systems,” he explained.
3. Human Capital Development
According to him, with global markets becoming more competitive, Ghana must invest in digital intelligence, technical skills, and workforce productivity to stay ahead.
“Our workers must be equipped with the skills to compete on a global scale. From AI-driven industries to precision agriculture, we need to ensure that our workforce is prepared for the future,” he said.
He disclosed that to implement these pillars, the government is launching seven major programs, including:
- SME Financing and Enterprise Support: Establishing a $500 million SME fund and an additional €150 million to provide long-term, low-interest financing for small businesses.
- Agricultural Production Program: Focusing on key value chains such as rice, maize, soybean, and edible oils to reduce import dependence.
- Manufacturing Value Chain Development: Expanding agro-processing, pharmaceuticals, and industrial technology to promote local production.
- Market Expansion Initiatives: Strengthening domestic and regional trade through improved logistics and infrastructure.
- Human Capital and Workforce Development: Training and upskilling workers in technology, automation, and digital intelligence.
- Industrial and Technological Infrastructure: Encouraging local production of machinery and technology to support industrial growth.
- Export Development and Competitiveness: Positioning Ghana as a leader in West Africa’s 425-million-person market by ensuring export-oriented industrialization.
Goosie Tanoh, however, admitted that implementing the 24-hour economy vision would require strong public-private sector collaboration, investment in infrastructure, and policy consistency.
He warned that there will be challenges, but the alternative is worse, and stressed, “if we do not act now, we will continue to experience job losses, economic instability, and a widening income gap.”
The government is working with two major banks and the Bank of Ghana to manage exchange rate risks, ensuring that loans for SMEs remain affordable with interest rates targeted between 5% and 12%.
