Ghana’s proposed 24-hour economy will require significant improvements in its small and medium-sized enterprises (SMEs) to succeed. The Association of Ghana Industries (AGI) states that stronger financial management, better corporate governance, and increased operational capacity are essential for these businesses. AGI President Kofi Nsiah-Poku highlighted these needs, emphasizing that SMEs must be prepared to benefit from round-the-clock economic activity.
The AGI is actively working with the government and the 24-hour economy secretariat. Their goal is to create an environment where smaller businesses can expand and participate in new opportunities. Mr. Nsiah-Poku’s comments came during an SME training programme in Takoradi for businesses from the Western and Central regions. This initiative underscores a central challenge for the 24-hour economy: simply extending operating hours is not enough.
Ghana’s economic growth strategy often focuses on creating a vibrant private sector. The 24-hour economy is a key policy initiative designed to boost productivity and employment. However, many Ghanaian SMEs face structural challenges, including limited access to finance and weak internal controls. Addressing these issues is critical for the policy to achieve its intended impact on the national economy.
Mr. Nsiah-Poku confirmed the AGI’s commitment to supporting this transition. He stated, “So, we are working hard with government to make sure that there are policies that will support or give a good environment for these small businesses to grow.” This collaboration aims to ensure that the policy translates into tangible benefits for a broad range of businesses.
For the 24-hour economy to be effective, businesses need sufficient demand, working capital, and robust management systems. They also require adequate productive capacity to make additional shifts commercially viable. Many SMEs currently lack these foundational elements. The AGI’s training, therefore, focuses on critical areas like bookkeeping and corporate governance. Entrepreneurs are encouraged to maintain accurate records and separate personal from business finances.
These deficiencies have historically limited SME access to formal finance. Banks struggle to assess revenue, profitability, and cash flow when records are incomplete. This makes otherwise viable businesses appear too risky for lending. Operating additional shifts under a 24-hour model requires financing for new workers, machinery, inventory, and other expenses. Without affordable working capital, many SMEs will struggle to participate effectively.
Better bookkeeping is more than an administrative improvement; it can determine a business’s ability to secure credit and scale production. The broader economic test is whether the 24-hour economy genuinely raises productivity. A factory operating below capacity could add shifts, using existing infrastructure more intensively. Logistics companies and exporters could also benefit from reduced downtime.
These opportunities depend on whether extra hours generate enough revenue to cover higher operational costs. These costs include increased wages, electricity, transportation, and security. The wider business environment is therefore crucial. Reliable power, competitive financing, efficient transport, and predictable regulation will all influence the economic viability of extended operating hours.
The government’s challenge is to create incentives that stimulate productive activity. It must avoid creating permanent subsidies that merely compensate businesses for uneconomic operations. Mr. Nsiah-Poku shared his own entrepreneurial journey, starting medicine manufacturing 35 years ago. This illustrates the potential for small businesses to grow into larger industrial enterprises.
Ghana creates many small businesses, but few transition into medium-sized or large enterprises. These larger entities are capable of competing regionally or internationally. Informality, weak governance, and limited access to capital remain significant barriers to this progression. When entrepreneurs mix personal and company finances, or lack formal decision-making structures, expansion becomes difficult.
Banks face higher risk, investors struggle to value companies, and succession planning becomes more complex. Corporate governance, therefore, acts as an economic asset. Reliable accounts, clear responsibilities, and internal financial controls improve a company’s ability to attract capital. They also help businesses enter formal supply contracts and meet the requirements of larger corporate customers. This will be particularly important if the 24-hour economy generates deeper industrial supply chains.