Neelam Rahim | neelam@radioislam.co.za
3-minute read
08 March 2025 | 12:42 CAT

ACCRA, GHANA – MARCH 3: John Mahama, Ghana’s president, speaks during the National Economic Dialogue on March 3, 2025, in Accra, Ghana. (Photo by Ernest Ankomah/Getty Images)

Ghana’s latest economic dialogue aims to transition the country from its long-standing Guggisberg economy to a more diversified and resilient economic model. The discussion has raised critical questions about whether this dialogue can create a sustainable blueprint for economic transformation.

The Guggisberg economy, named after colonial-era Governor Gordon Guggisberg, has long dictated Ghana’s economic structure—one heavily reliant on exporting raw materials while importing finished goods. Researcher Enoch Randy Aikin from the Institute for Security Studies explains, “This model, established during colonial rule, was designed to supply raw materials to fuel Europe’s industrial revolution. Unfortunately, decades later, the fundamental structure remains unchanged.”

President John Mahama’s proposal of a 24-hour economy has sparked debate on whether Ghana is ready for such a shift. Aikin acknowledges the challenges but sees potential opportunities. “A 24-hour economy is feasible if certain preconditions are met. Demand must exist, and productivity must rise. Without productivity gains that reduce costs, businesses cannot expand production,” he notes.

In many advanced economies, a 24-hour system operates through staggered shifts in key industries. “You find this model in cities like Sydney and London, where industries run around the clock. While not all sectors require it, manufacturing and production industries could benefit significantly,” Aikin adds. He suggests Ghana focus on key strategic industries where round-the-clock operations can boost productivity and service delivery.

One of the biggest roadblocks to industrialization, however, remains Ghana’s weak power infrastructure. “You cannot sustain a 24-hour economy when power outages last up to 14 hours a day,” Aikin cautions. He emphasizes that reliable and affordable electricity is crucial for economic transformation.

Ghana’s reliance on the International Monetary Fund (IMF) for bailouts has also hindered long-term reform. “IMF programs often emphasize increasing taxes but fail to push for productivity improvements,” Aikin argues. He calls for a long-term strategy focused on enhancing productivity, particularly in the public sector, to drive sustainable economic growth.

With the informal sector comprising 80% of the workforce, integrating these businesses into the broader economy is another pressing challenge. “The key is to make them more productive, not just tax them. Simplified business registration and digitalization could encourage formalization,” Aikin suggests.

As Ghana navigates its economic future, experts stress the importance of self-reliance, strategic industrialization, and increased productivity. The question remains—can this dialogue spark the structural changes needed for Ghana’s long-term economic success?

Listen to the full interview with Annisa Essack and Researcher Enoch Randy Aikin on Your World Today.