Electricity must be affordable for the 24-hour economy to work— P.K. Sarpong reminds Mahama

A leading voice in Ghana’s policy and research space, P.K. Sarpong, has raised pressing questions about the viability of former President John Dramani Mahama’s much-publicised 24-hour economy initiative, citing recent increases in electricity tariffs as a major setback.

“We need to remind President Mahama that he came to office promising to implement a wide range of policies and programmes to better the lives of Ghanaians,” said Sarpong, a respected associate of the Institute of Economic Research and Public Policy (IERPP).

“One of the key promises was the implementation of the 24-hour economy.”

The 24-hour economy plan — a central plank of the opposition National Democratic Congress (NDC)’s 2024 campaign — is built on the idea of keeping key sectors of the economy running around the clock to boost productivity, create jobs, and accelerate national development.

But according to P.K. Sarpong, the vision is already being undermined by recent developments, particularly the sharp increase in electricity tariffs.

“Contingent on the successful implementation of the 24-hour economic plan is not only an efficient power supply but also an affordable one.

In fact, the national chairman of the NDC, Johnson Asiedu Nketiah, in the run-up to the 2024 election, was emphatic that electricity tariffs would be halved for entities that would register for the 24-hour economic plan.”

That campaign pledge appears to be clashing with economic realities. Ghana’s Public Utilities Regulatory Commission (PURC) recently announced a 14.75% hike in electricity tariffs — a move that has sparked concern among both consumers and policy analysts.

“With a 14.75% hike in electricity tariffs, how can the programme be rolled out?” Sarpong asked.

He further noted via a Facebook post that the IERPP finds it difficult to reconcile the former president’s flagship economic policy with the rising cost of utilities, especially power.

He hinted that without a clear strategy to cushion participating businesses, the 24-hour economy risks being “another well-intentioned idea strangled by impractical economics.”