- Ghana’s 24-Hour Economy Will Need Stronger SMEs, Better Records and Access to Finance — AGI
Ghana’s small and medium-sized enterprises will need stronger financial management, better corporate governance and greater operational capacity if they are to benefit meaningfully from the government’s 24-hour economy programme, according to the Association of Ghana Industries.
Kofi Nsiah-Poku, President of the AGI, said the association was working with the government and the 24-hour economy secretariat to help create an environment in which smaller businesses can expand and participate in new opportunities expected to emerge from round-the-clock economic activity.
“So, we are working hard with government to make sure that there are policies that will support or give a good environment for these small businesses to grow,” he said on the sidelines of an SME training programme for businesses from the Western and Central regions in Takoradi.
His comments highlight one of the central tests facing the 24-hour economy: extending economic activity requires more than simply keeping businesses open for longer. Firms must have sufficient demand, working capital, management systems and productive capacity to make additional shifts commercially viable.
For many SMEs, those foundations remain weak. The AGI training therefore focused on bookkeeping and corporate governance, with entrepreneurs encouraged to maintain accurate records, separate personal finances from business accounts and develop more credible internal structures.
These deficiencies have long restricted SME access to formal finance. Banks struggle to assess revenue, profitability, cash flow and debt-servicing capacity where records are incomplete, making otherwise viable businesses appear too risky to lend to.
That constraint becomes more important under a 24-hour economy model. Operating additional shifts can require new workers, machinery, inventory, raw materials, electricity, transport, security and other expenses that need to be financed before the additional revenue is earned.
Without affordable working capital, many SMEs could struggle to participate meaningfully. Better bookkeeping is therefore not simply an administrative improvement; it could determine whether a business is able to obtain credit and scale production.
The wider economic test will be whether the 24-hour economy raises productivity rather than merely extending working hours. A factory operating below installed capacity could potentially add a second or third shift, allowing machinery and fixed infrastructure to be used more intensively.
Logistics companies, agro-processors, exporters and businesses connected to ports could similarly benefit from reduced downtime. But these opportunities will only materialise if the extra hours generate enough revenue to cover higher wages, electricity, transportation and security costs.
That places the wider business environment at the centre of the policy. Reliable power, competitive financing, efficient transport, security and predictable regulation will all influence whether additional operating hours make economic sense.
The government’s challenge will therefore be to create incentives that stimulate productive activity without creating permanent subsidies that simply compensate businesses for uneconomic operations.
Mr Nsiah-Poku drew on his own entrepreneurial experience to underline the potential for smaller businesses to grow into larger industrial enterprises. “We all started in the same manner. I started manufacturing medicine from my father directly 35 years back,” he said.
The broader challenge is that Ghana creates many small businesses, but relatively few make the transition into medium-sized and large enterprises capable of competing regionally or internationally. Informality, weak governance and limited access to capital remain major barriers to that progression.
Where entrepreneurs mix personal and company finances, maintain poor records or lack formal decision-making structures, expansion beyond the founder becomes more difficult. Banks face higher risk, investors struggle to value the company, and succession planning becomes more complicated.
Corporate governance can therefore become an economic asset. Reliable accounts, clear responsibilities and internal financial controls can improve a company’s ability to attract outside capital, enter formal supply contracts and meet the requirements of larger corporate customers.
That could become particularly important if the 24-hour economy generates deeper industrial supply chains. A manufacturer adding another production shift may need additional packaging, logistics, maintenance, food services, cleaning, security and technology support.
Those secondary effects could create opportunities for SMEs even if they do not themselves operate around the clock. The multiplier effect would be strongest where Ghanaian suppliers can meet the quality, delivery and accounting standards required by larger businesses.
This could also support Ghana’s broader industrialisation objective by allowing more value to remain within the domestic economy rather than being lost through imported inputs and services.
But financing will likely determine which firms are able to respond. Large businesses generally have greater access to bank credit, capital markets and retained earnings, while smaller firms often depend heavily on personal savings and expensive commercial loans.
If SMEs remain unable to access capital on viable terms, larger firms could capture a disproportionate share of the benefits from expanded economic activity. That could widen rather than narrow the productivity gap between large and small businesses.
Training in financial management can improve SME bankability, but it cannot by itself solve the cost and availability of credit. Banks must be able to price SME risks effectively, while businesses must demonstrate that borrowed capital can be managed responsibly.
AGI’s intervention attempts to strengthen that second part of the equation.
The Takoradi programme is the fifth SME training session organised by the association across the country, reflecting a broader effort to strengthen the institutional capacity of smaller enterprises ahead of the 24-hour economy rollout.
For SMEs, preparation begins before any additional shift is introduced. It starts with reliable accounts, separation of personal and company finances, stronger governance structures and credible access to working capital.
If those foundations are combined with reliable infrastructure, affordable finance and stronger demand, the 24-hour economy could create a pathway for smaller firms to scale into more productive enterprises.
Without them, however, Ghana risks extending the operating day without addressing the structural weaknesses that have prevented many SMEs from growing in the first place.
