Extending working hours without simultaneous investments in technology and skills development risks raising business costs rather than improving output, a leading Ghanaian economist has warned, as debate continues around the government’s newly enacted 24-hour economy agenda.
Dr Daniel Anim-Prempeh, Chief Economist at the Policy Initiative for Economic Development (PIED), cautioned that the widely held assumption that more hours automatically translate into higher productivity is fundamentally mistaken, arguing that the real drivers of economic growth are efficiency, automation, and a skilled workforce.
“Longer hours do not necessarily mean higher productivity,” he said. “If firms are not supported with automation and a skilled workforce, what you end up with is higher operational costs and diminishing returns.”
President John Dramani Mahama has described the 24-Hour Economy Authority, which was signed into law in February 2026, as the anchor of a productivity revolution in Ghana’s manufacturing and industrial sectors, arguing that factories operating three shifts a day would maximise the use of capital, infrastructure, and labour while reducing unit production costs. Dr Anim-Prempeh broadly supports the goal of expanding production but insists the gains will only materialise if structural reforms accompany the policy.
He argued that businesses operating longer hours would face additional expenses including higher energy consumption, increased wage bills, and maintenance costs. Without a corresponding rise in output per worker, he warned, these costs would erode profit margins and weaken competitiveness. The concern is particularly acute given Ghana’s energy cost environment, where many firms already operate under financial strain from electricity pricing.
A central focus of Dr Anim-Prempeh’s critique is automation. Many small and medium-sized enterprises (SMEs), which form the backbone of Ghana’s economy, still rely heavily on manual processes, limiting their ability to scale efficiently. He argued that without targeted state support for technology adoption, a push for longer operating hours could disproportionately burden smaller firms, widening the divide between large companies and the SME sector.
He also stressed that workforce skills upgrading must go hand in hand with technology deployment. A workforce equipped with technical, digital, and problem-solving capabilities, he said, is essential for translating investment in new systems into real efficiency gains, whether in manufacturing, agriculture, or services.
On competitiveness, Dr Anim-Prempeh noted that countries which have successfully raised productivity levels did so by investing in innovation, education, and infrastructure rather than extending working hours. He called for a coordinated national strategy aligning education, industrial policy, and digital transformation to ensure that any gains are durable.
“Competitiveness is built on efficiency, not exhaustion,” he said. “If we want to grow the economy in a meaningful way, we must focus on how to produce more value within the same time, not just extend the time itself.”
He recommended that policy interventions prioritise incentives for technology adoption, support for research and development, and stronger linkages between industry and training institutions as the more sustainable route to expanding Ghana’s productive capacity.
