For decades, Ghana’s economy has operated within the colonial model which is hinged on export of raw materials with little focus on value addition.
Despite political independence, our economic model relies on the export of unprocessed raw materials while importing expensive finished goods.
The result is a persistent value drain. We export our wealth in raw form—cocoa beans, gold ore, crude oil—only to re-import it later as chocolate, jewellery, and refined fuels.
This dependency entrenches trade deficits, weakens our currency, and limits job creation.
After the overthrow of Ghana’s first President, Dr Kwame Nkrumah, who attempted to industrialise the economy through the creation of state-led enterprises to produce for local consumption and for exports, in a military coup in 1966, little attempt have been made by successive governments to industrialise the economy.
The country’s attempt to industrialise appeared to have weakened as a result of the government’s adoption of Structural Adjustment Programme and Economic Recovery Programme of the World Bank and the International Monetary Fund, through which most of the State Enterprises were privatised.
Is it not worrying that in the 1960s where there had not been much advancement in technology, Ghana could produce items like radio, lorry tyres, television and glass, but today import such items?
If the country is serious about creating inclusive prosperity, then it must boldly transition from raw material exports to value-added production.
This is the reason why The Ghanaian Times sees the government’s 24-Hour economy programme, a pathway to shift from import to an export-led economy, as an innovative initiative.
At the core of the programme is reconfiguring Ghana’s productive landscape to work around the clock—unlocking industrial productivity, enabling logistics, and facilitating efficient market linkages.
But beyond extended working hours, it is a policy for deeper structural transformation: building integrated value chains, investing in local production, and creating decent jobs.
As highlighted by the 24-Hour economy policy document, the Ghanaian manufacturing sector suffers from chronic underutilisation. Most local firms depend heavily on imported raw materials and machinery, with over 90 per cent of their output sold locally.
According to the policy document, only 25 per cent of Ghanaian manufacturers export, and many are locked out of global markets due to uncompetitive costs and inconsistent supply.
It is worrying the country imported over $2 billion worth of food in 2024 alone—products like rice, poultry offal, sugar, and cereals that can be produced domestically.
The policy mentioned high and unreliable energy costs as one of the challenges hampering local production. It said Ghanaian firms lose nearly 10 per cent of annual sales due to power outages and spend significant resources on self-generation.
Financing is equally constrained, with commercial lending rates above 25 per cent and short repayment periods that make it nearly impossible to invest in long-term industrial projects.
Encouragingly, the policy has outlined measures to address the challenges aforementioned through initiatives such as the Infrastructure Tax Credit Scheme, where private investors can receive up to 30 per cent tax credit for building critical infrastructure—feeder roads, solar mini-grids, industrial parks, and logistic terminals.
Additionally, the Bioenergy and By-product Innovation Incentive offers a 10 per cent tax rebate for two years to firms operating in industrial and agro-ecological zones—encouraging waste-to-energy innovation and circular economy practices.
Importantly, the policy also promotes location-based tax incentives, with rates as low as five per cent for firms operating in the Northern Regions and rural towns—thereby fostering regional equity in industrial growth.
The Ghanaian Times believes that incentives alone are not enough.
In addition to incentives, there must be a coordinated national effort to build integrated domestic value chains—with energy, logistics, financing, and skills development all aligned toward a common goal to add value locally and compete globally.
The country cannot afford to remain a raw material economy. It is time to build factories that run 24/7, powered by local energy and linked to both domestic and export markets. It is time to process what we grow, refine what we mine, and innovate what we import.
The 24-Hour economy programme should go beyond rhetoric but concrete actions to change the current economic paradigm from extraction of raw materials to value addition to generate more revenue and jobs for the teeming unemployed youth. The time for value addition is now.
The recent global events such as the COVID-19 pandemic has taught the country great lessons that we cannot depend on other economies for our needs.
The private sector should be actively involved in the implementation of the policy and must be at the centre of efforts to industrialise.
Let Ghana rise, not just as a supplier of raw materials, but as a producer of value.
We on The Ghanaian Times commend the President, John Dramani Mahama, for the initiative and we believe the programme will be properly implemented to achieve the desired results.