The Presidential Advisor on the government’s 24-Hour Economy policy, Goosie Tanoh, has explained that the initiative aims to encourage businesses to voluntarily increase production rather than forcing them to operate around the clock.
Speaking on GBC, Mr. Tanoh stated that the government’s approach will focus on creating a stable economic environment to attract private sector investment and enable companies to expand their operations.
He emphasised that productivity growth, improved industrial capacity, and a supportive investment regime are key to strengthening the policy.
According to him, when an economy is already operating at full capacity, simply adding more shifts will not automatically raise output.
“It is a function of capacity, it is a function of the investment regime, and the incentive regime that allows companies to take decisions,” he added.
He explained that firms will only increase shifts when the marginal cost of additional production is outweighed by the expected marginal revenue.
“Companies operate on the marginal. If the marginal cost of hiring more people and producing the next unit of output is less than the marginal revenue, they are not going to do it. So you can’t force anybody to do 1-3-3. What you need to do is to create an incentive and the environment that allows them to do that,” he explained.
The new policy framework is designed to establish the legal and institutional structure needed to manage the implementation of this flagship programme. The government says it will improve productivity, expand exports, and generate employment by encouraging industries and service providers to extend operations beyond conventional working hours.