High interest rates, utility costs threaten 24-Hour Economy plan — GNCCI CEO

The Chief Executive Officer of the Ghana National Chamber of Commerce and Industry (GNCCI), Mark Badu-Aboagye, has raised concerns about the feasibility of the newly launched 24-Hour Economy initiative, cautioning that it may fail without resolving deep-rooted challenges within Ghana’s business environment.

Speaking on PM Express on JoyNews on Monday, July 7, shortly after the National Democratic Congress (NDC) officially launched the policy, Mr. Badu-Aboagye emphasized that Ghana’s current economic climate is not conducive to sustaining such an ambitious shift.

“Launching a 24-hour economy will not change the harsh business environment that we are facing now,” he stated. “The priority should be improving the overall business climate before implementing a 24-hour operational model.”

While acknowledging recent improvements in macroeconomic indicators such as inflation, the Ghana cedi, and business confidence, he argued that these developments are not yet sufficient to sustain a long-term shift in economic structure.

“This is a safe space for us to start considering a 24-hour economy. It’s a good beginning, but not enough,” he noted. “An inflation rate of 13.7% is necessary, but not sufficient to bring real transformation.”

Mr. Badu-Aboagye stressed that improvements must translate into measurable relief for businesses. He highlighted that the real test lies in how these macroeconomic gains affect the cost of doing business—particularly in terms of credit, utilities, and energy.

“We want to see how lower inflation translates into reduced credit costs. We want to see its effect on utility tariffs, especially electricity and water. These are critical inputs in manufacturing.”

He pointed out that Ghana’s energy costs remain among the highest in the region, undermining the competitiveness of local producers.

“For manufacturing companies in Ghana, electricity costs range between 12 and 15 cents per kilowatt-hour. In competing countries, it’s below five cents. If we truly want to support manufacturing, we must tackle utility and credit costs.”

He also took issue with the prevailing policy rate of 28%, which results in commercial interest rates exceeding 30%—a level he described as incompatible with industrial growth and export competitiveness.

“No business can thrive in an export-driven economy with such high lending rates,” he said.

According to the GNCCI CEO, any effort to expand into a 24-hour economy must be underpinned by strong competitiveness—not just for domestic consumption but for global market viability.

“If this policy is aimed at boosting exports, then competitiveness is non-negotiable. If it’s only to serve local needs, we don’t need a 24-hour economy because we can already meet domestic demand.”

He cautioned that international markets are driven by value, not slogans.

“When you send products abroad, buyers won’t purchase them just because they’re made in Ghana or because you’ve launched a 24-hour economy. They will choose your goods based on quality and price competitiveness.”

In conclusion, Mr. Badu-Aboagye underscored the need for government to ensure that recent macroeconomic gains—such as reduced inflation and a stabilizing cedi—are strategically leveraged to lower policy rates, utility costs, and improve access to finance. Without this, the 24-hour economy will remain aspirational rather than transformational.