24-hour policy launched, set to create 1.7 million jobs

The NDC government has formally introduced its hallmark 24-hour economy strategy after 176 days in office.

The policy’s implementation and funding are described in detail in the 283-page document. It also shows a noticeable change in emphasis.

What started out as a project to keep state agencies and companies running around the clock has developed into a more comprehensive plan to remove structural barriers to Ghana’s economy.

There will be two phases to the policy’s implementation. In the first, companies are directly rewarded for working longer hours. The second focuses on more extensive reforms that are required to enable a paradigm of continuous manufacturing.

Tax benefits for businesses that remain open

To entice enterprises, the government is providing a variety of tax and regulatory benefits.

Businesses who participate in the initiative will not be required to pay import taxes on raw materials, manufacturing equipment, renewable energy systems, and logistics infrastructure. Companies that operate in critical agricultural areas like sugar, livestock, cereals, vegetables, oilseeds, and tubers will not be subject to corporate income tax at all.

Corporate income tax refunds will help other companies. A 25% discount will be given to businesses that operate two shifts. A 50% refund will be given to those who work three shifts. Additionally, targeted VAT exemptions will be implemented to assist in reducing the price of locally produced goods.

The 24H+ program is expected to generate 1.7 million employment over the course of four years and is estimated to cost US$4 billion, with the government contributing between US$300 million and US$400 million as seed funding.

According to President Mahama, Ghana has never benefited from the system in which the nation exports raw materials such as cocoa, gold, lumber, oil, and others to other countries only to buy them back as completed goods at a significantly higher price.