CPS Warns of Fiscal and Implementation Risks in Ghana’s 24-Hour Economy and Export Development Plan

Accra, Ghana — The Centre for Policy Scrutiny (CPS) has raised serious concerns about the fiscal and institutional underpinnings of Ghana’s ambitious 24-Hour Economy and Accelerated Export Development Programme (24H+), warning that weak financial planning and fragmented governance could derail what is being billed as the country’s most transformative economic agenda in decades.

In its latest policy review titled “The 24-Hour Economy and Accelerated Export Development Programme: A Critical Review,” the think tank argues that while the 24H+ initiative embodies bold intent, it risks becoming another overextended national project unless anchored in pragmatic fiscal realism and institutional discipline.

Fiscal Gaps in the Vision

Led by Executive Director and economist Dr. Adu Owusu Sarkodie and researcher Stephanie Anokyewa Tawia, the CPS report dissects the coherence, fiscal credibility, and feasibility of the government’s 10-year transformation strategy. The initiative, launched by President John Dramani Mahama in July 2025, aims to create five million jobs by 2034 and sustain annual GDP growth of six percent through 24-hour production cycles, expanded exports, and industrial diversification.

However, the CPS report warns that the programme’s estimated $4 billion cost appears understated, failing to account for tax incentives, infrastructure subsidies, and indirect costs that could significantly strain public finances.

“Ghana’s public investment levels—averaging just 2.8% of GDP over the past decade—are insufficient to deliver the scale of infrastructure and industrial expansion the 24H+ envisions,” the report noted.

The think tank cautions that this fiscal gap could force overreliance on private sector participation, which may not materialize without strong guarantees, transparent procurement processes, and a clear investment framework.

“The scale of the 24H+ ambition contrasts sharply with current fiscal realities,” CPS stated. “Without transparent costing and phased implementation, the programme could mirror the fate of past transformation efforts that stalled after an enthusiastic start.”

Weak Institutional Coordination

Beyond fiscal constraints, CPS identified institutional fragmentation as a major structural flaw. The 24H+ programme, it said, is not yet fully embedded within the National Development Planning Commission’s (NDPC) medium-term development framework — a gap that could result in overlapping mandates, resource duplication, and policy incoherence.

“For the 24H+ to succeed, it must be embedded within the national planning and fiscal framework,” said Dr. Sarkodie. “Otherwise, coordination problems, resource waste and policy overlaps will continue to undermine implementation.”

The review also questions the design of some proposed fiscal incentives, such as corporate tax rebates for firms operating multiple shifts, arguing that such incentives should be performance-based and linked to measurable job creation, export earnings, and productivity gains rather than mere operational hours.

Missing Metrics and Accountability

According to CPS, a major weakness in the programme’s design is the absence of measurable implementation metrics. While the government’s plan outlines ambitious targets across agriculture, manufacturing, tourism, and logistics, it lacks clear timelines, benchmarks, and accountability mechanisms to track progress.

“There is a need for more detailed project appraisals, costing, and sequencing to guide realistic implementation,” Dr. Sarkodie added. “Without that, the programme risks being a statement of intent rather than a deliverable plan.”

Promise and Potential

Despite these criticisms, CPS acknowledged the conceptual strength of the 24H+ framework. The initiative’s focus on agro-processing, manufacturing, and regional development, particularly its plan to transform the Volta Basin into an agro-industrial corridor, was described as “visionary and potentially catalytic.”

The report also praised the programme’s intent to link Ghana’s productivity agenda to export diversification, a move that could enhance resilience against commodity shocks and strengthen the country’s position in global value chains.

Still, CPS stressed that the government must learn from past initiatives — such as the Ghana Shared Growth and Development Agenda (GSGDA) and the One District One Factory (1D1F) policy — that faltered due to over-ambition, weak monitoring, and limited fiscal space.

“The 24H+ presents an opportunity to reset Ghana’s economic model,” said Dr. Sarkodie. “But it must be grounded in fiscal discipline, realistic costing, and institutional learning.”

Recommendations

To strengthen the programme’s prospects, CPS recommends that government:

1. Integrate the 24H+ plan into Ghana’s medium-term national development framework under NDPC supervision.

2. Publish detailed cost estimates and funding strategies to enhance fiscal transparency.

3. Prioritise high-impact projects based on feasibility, resource availability, and measurable socio-economic benefits.

4. Develop a monitoring and evaluation (M&E) framework with clear indicators and timelines.

5. Enhance coordination among key ministries — Trade, Finance, Agriculture, Energy, and Labour — to prevent duplication and ensure coherence.

Looking Ahead

As Ghana enters a critical phase of economic recalibration, the CPS report serves as both a warning and a roadmap. It urges policymakers to align ambition with realism, political vision with technical detail, and short-term enthusiasm with long-term sustainability.

The 24-Hour Economy and Accelerated Export Development Programme remains a bold blueprint for transformation — but, as the report concludes, “its success will depend less on political branding and more on credible financing, pragmatic sequencing, and effective institutional delivery.”

Source: Accra Business News