In the lead-up to the 2024 elections in Ghana, the leader of the National Democratic Congress (NDC), John Mahama, has stated that when they win, they will implement a 24-hour economy.
Well, is a 24-hour economy something that can be implemented as a policy, when one considers demand, supply, and elasticity?
In a move to explain their supposed policy initiative, their explanations have not only been laughable, but not implementable.
What Is a 24-Hour Economy?
A 24-hour economy refers to a system where businesses, services, and industries operate around the clock, providing goods and services at any time of the day or night. In such an economy, people can shop, travel, access healthcare, and even enjoy entertainment no matter the hour.
Countries with strong 24-hour economies, such as the United States and some parts of Europe, tend to have an advanced infrastructure, high urbanisation rates, and strong demand for services during all hours.
In Ghana, the idea of a 24-hour economy has been discussed as a way to boost productivity and economic growth. The concept may be appealing because it suggests more jobs, continuous access to essential services, and increased convenience for citizens.
However, achieving a functional 24-hour economy is not as simple as flipping a switch or passing a policy. It requires a deeper understanding of the factors that naturally lead to such an economic structure.
Why a 24-Hour Economy Is Not a Policy Like Free SHS
It is important to understand that a 24-hour economy cannot be “introduced” as a policy like Free SHS or healthcare reforms. Programmes like Free SHS are straightforward initiatives where the government allocates resources and sets up systems to deliver the service.
Once the policy is announced and funding is provided, schools can open their doors to all eligible students.
A 24-hour economy, on the other hand, depends on whether the society and economy are ready for it. It is not something a government can simply legislate into existence.
For a 24-hour economy to thrive, there must be a high level of demand for goods and services at night, businesses willing to operate 24/7, and the infrastructure to support round-the-clock activities.
Without these factors, businesses would face losses, and citizens would find little reason to use such services during off-peak hours.
Politicians who claim they can “bring a 24-hour economy” misunderstand the complexity of the concept. It is not about making a policy announcement but about creating the right conditions for businesses and consumers to naturally extend their activities beyond normal working hours.
How Demand, Supply, and Elasticity Shape a 24-Hour Economy
The development of a 24-hour economy is deeply rooted in economic principles like demand, supply, and elasticity.
- Demand refers to the willingness and ability of people to buy goods and services. For a 24-hour economy to succeed, there must be a consistent demand for services both during the day and at night. If people do not need or cannot afford goods and services at night, businesses will have no incentive to stay open.
- Supply is the ability of businesses to provide goods and services. To support a 24-hour economy, businesses must have access to reliable electricity, transportation, and labour. Without these, even the most willing businesses cannot sustain round-the-clock operations.
- Elasticity measures how responsive demand and supply are to changes in price, income, or availability. If the demand for night-time services is too inelastic—meaning it does not increase significantly even when services are offered—businesses will struggle to make profits. Similarly, if the supply of workers and infrastructure cannot expand to meet demand, a 24-hour economy becomes unrealistic.
These factors show that a 24-hour economy emerges naturally when demand and supply conditions align. It cannot be imposed from the top down as a government policy.
A 24-Hour Economy as a Natural Outcome, Not a Policy
How a 24-Hour Economy Emerges Naturally
A 24-hour economy develops when economic and social conditions create a consistent need for round-the-clock activities. This type of economy thrives in regions where demand for goods and services remains steady throughout the day and night.
For example, in highly urbanised areas with dense populations, people often require access to transport, healthcare, and retail services after traditional working hours. This demand naturally pushes businesses to extend their operations to remain competitive and profitable.
For a 24-hour economy to exist, businesses need the infrastructure to operate seamlessly. Reliable electricity, robust transport systems, and an available workforce are essential.
Social factors also play a role; societies with flexible work schedules and active nightlife are more likely to support a thriving 24-hour economy. Without these elements, the idea of constant economic activity cannot be sustained.
Why a 24-Hour Economy Is Not Like Free SHS
Unlike direct government policies such as Free SHS, which can be implemented through funding and enforcement, a 24-hour economy cannot simply be introduced by a decree.
Programmes like Free SHS involve allocating resources and setting up systems, enabling immediate results like increased school enrolment. Once the policy is rolled out, the benefits are visible within a short time.
In contrast, a 24-hour economy is not something the government can impose overnight. Businesses must see a clear demand for extended hours, and consumers must have the income and habits to support it.
Declaring a 24-hour economy without the proper conditions would leave businesses struggling with low profits and increased operational costs. Unlike Free SHS, the success of a 24-hour economy depends on gradual and sustained economic growth.
What a 24-Hour Economy Needs to Succeed
For a 24-hour economy to become a reality, there must be long-term investments in infrastructure, economic growth, and cultural shifts.
- A reliable power supply is crucial for businesses to operate beyond normal hours.
- Roads, public transport, and security must also be improved to support night-time activities.
Without these, businesses would face high risks and costs, discouraging them from staying open all night.
Societal changes are equally important. People need disposable income to afford services during off-peak hours, and cultural norms must evolve to embrace night-time activities.
For instance, industries like transportation and healthcare often form the backbone of a 24-hour economy because their services are essential. However, for other sectors like retail and entertainment, consumer behaviour needs to shift before they can benefit from 24/7 operations.
Declaring a 24-hour economy without addressing these factors would likely fail. This type of economy emerges when the environment supports it, not through political promises or laws.
Sustained growth, infrastructure, and societal changes are what lay the foundation for such an economy to thrive.
A 24-hour economy is the result of natural economic progress, not a policy that can be enforced. Recognising this distinction can help policymakers focus on creating the conditions needed for such a system to grow over time.
The Role of Demand in Creating a 24-Hour Economy
What Is Demand?
Demand refers to the quantity of goods or services that consumers are willing and able to buy at different prices over a specific period. It is one of the key drivers of economic activity.
When demand for a product or service is high, businesses are motivated to increase supply to meet the needs of their customers.
In the context of a 24-hour economy, consistent demand throughout the day and night is critical. Without it, businesses may find it unprofitable to extend their operating hours.
Why High Demand Is Essential for a 24-Hour Economy
For businesses to justify staying open 24/7, they must see sufficient demand for their goods or services during non-peak hours.
For example, supermarkets, hospitals, or transport services operating at night need customers willing to use their services to cover the costs of labour, utilities, and security during those hours. If the demand during these hours is too low, businesses risk operating at a loss.
A successful 24-hour economy relies on more than just occasional night-time activity. It requires sustained and predictable demand across all hours. This ensures that businesses can remain profitable while meeting the needs of consumers.
When demand is uneven, with spikes during the day and significant drops at night, businesses are unlikely to find it worthwhile to operate round-the-clock.
The graph above illustrates the concept of demand fluctuations over a 24-hour period, showing how businesses must assess the demand for their goods or services during non-peak hours to justify staying open 24/7.
- The orange line represents the daytime demand, where activity peaks during the day with high customer demand. This is when businesses see the most profit and justify staying open during these hours.
- The blue dashed line shows night-time demand, where the demand is noticeably lower, particularly during the late-night and early morning hours. Businesses that operate 24/7 need to evaluate whether this reduced demand can cover costs such as labor, utilities, and security.
If the demand during night hours is too low (as shown by the drop in the blue line), businesses might not find it economically viable to remain open 24/7. Therefore, a successful 24-hour economy depends on a sustained and predictable demand across all hours, not just occasional night-time activity.
Ghana’s Daytime Consumption Patterns and Limited Night-Time Demand
In Ghana, consumer behaviour is heavily centred around daytime activities. Most shopping, work, and social engagements happen during the day.
This pattern is especially pronounced in rural areas, where life largely revolves around farming and local markets. After sunset, activity often slows down significantly, and demand for goods and services drops.
Even in urban centres like Accra, Kumasi, and Tema, night-time demand is limited to specific sectors such as transportation, nightlife, and healthcare. Many businesses close by early evening, reflecting the low demand during late hours.
For example, a clothing store or a small eatery may not find it worthwhile to remain open late at night, as most of their customers are active during the day.
This daytime-focused demand pattern poses a challenge to the idea of a 24-hour economy in Ghana. Unless there is a significant shift in consumer habits, businesses will have little reason to expand their operating hours into the night.
For a true 24-hour economy to emerge, demand at night must grow to a level that supports continuous operations.
Understanding the role of demand helps explain why a 24-hour economy cannot simply be implemented through policy. Instead, it requires sustained growth in consumer demand across all hours, driven by changes in income, habits, and infrastructure.
The Role of Supply in Supporting a 24-Hour Economy
What Is Supply?
Supply refers to the quantity of goods or services that businesses are willing and able to offer at various prices over a given period. It is influenced by a variety of factors, including production capacity, infrastructure, and available resources.
For a business to extend its operations to 24 hours, it must be able to supply goods or services consistently throughout the day and night. However, the decision to operate 24/7 is often tied to the ability to maintain a steady, reliable supply without incurring excessive costs.
Why Reliable Supply Is Crucial for a 24-Hour Economy
For businesses to operate around the clock, they need several key factors in place to ensure a consistent supply of products or services.
First, businesses need reliable infrastructure, such as a stable power supply, to keep operations running smoothly without interruptions. Without reliable electricity, businesses will struggle to remain open through the night, particularly in sectors like manufacturing, retail, and hospitality, where lighting, heating, and cooling are essential.
Second, affordable labour is crucial. Businesses must hire staff to work during night shifts, but wages and working conditions must be appealing enough to attract and retain workers willing to work outside regular hours. If labour costs are too high, businesses may find it unprofitable to extend their hours.
Lastly, businesses need to ensure they can make consistent profits even during off-peak hours. Operating 24/7 requires businesses to manage additional operational costs, including overtime wages, security, and utility costs.
Without a reliable customer base that generates enough revenue, the financial strain of staying open all night may outweigh the benefits.
Challenges in Ghana That Restrict Supply for a 24-Hour Economy
In Ghana, several factors hinder businesses from supplying goods and services around the clock. One of the most significant challenges is unreliable electricity. Frequent power outages, known as “dumsor,” disrupt operations and make it difficult for businesses to maintain consistent service, especially at night.
In sectors like retail, manufacturing, and food services, interruptions in power supply can lead to damaged products, delayed services, and increased operational costs.
Additionally, limited transportation options outside of peak hours can restrict businesses from supplying goods or services late into the night.
In many parts of Ghana, public transport systems are not robust enough to support round-the-clock commuting, and businesses may struggle to transport goods or employees during non-peak hours. This further discourages businesses from extending their hours.
The high operational costs, including wages for night shifts, security, and the added expense of utilities, also pose a challenge. For many businesses, these costs outweigh the potential profits from operating at night.
The relatively low demand for night-time services in many areas means that businesses cannot justify these extra expenses.
The role of supply in a 24-hour economy cannot be overlooked. To support round-the-clock operations, businesses need reliable infrastructure, affordable labour, and the ability to sustain profits.
Elasticity: The Bridge Between Demand and Supply
What Is Elasticity?
Elasticity is a measure of how responsive demand or supply is to changes in factors such as price, income, or availability.
In the context of a 24-hour economy, elasticity determines how businesses and consumers react to the availability of goods and services during off-peak hours. If both demand and supply are elastic enough, a 24-hour economy can thrive, as businesses can adapt to changes in demand and consumers are willing to engage in night-time consumption.
However, if either side lacks elasticity, sustaining 24-hour operations becomes difficult.
The elasticity of Demand in Ghana
The elasticity of demand refers to how sensitive consumers are to changes in price or availability. In the case of a 24-hour economy, it measures how likely consumers are to purchase goods or services during the night, instead of during traditional daytime hours.
For a 24-hour economy to be viable, there must be sufficient demand during night-time hours to justify businesses staying open.
In Ghana, however, the elasticity of demand is relatively low. The majority of the population has limited disposable income, which means many consumers are more focused on essential needs than on shopping or services during the night.
Additionally, consumption patterns are often necessity-driven, meaning that most people tend to buy goods or use services during the day when they are more readily available.
For example, in rural areas and smaller towns, night-time demand for groceries or household goods is nearly non-existent, as most people live by a daily cycle of work and farming.
In urban areas, although there is more potential for night-time demand, the general tendency for people to sleep at night and go about their regular business during the day limits responsiveness.
Even with the availability of goods or services at night, the average consumer’s low income and preference for daytime shopping mean they are unlikely to significantly increase consumption at night.
As a result, businesses may struggle to make a profit if they extend their hours without sufficient demand.
Elasticity of Supply in Ghana
The elasticity of supply refers to how responsive businesses are to changes in demand. For a business to operate around the clock, it must be able to adjust its supply to meet night-time demand.
However, in Ghana, the elasticity of supply is constrained by various factors, including high operational costs and resource limitations.
Operating 24/7 requires businesses to manage increased costs, such as higher wages for night shifts, additional security, and extended utility bills. These costs make it difficult for businesses to be flexible enough to meet any increases in night-time demand, particularly when that demand is not guaranteed to be consistent.
In sectors like retail or manufacturing, where overhead costs are already high, businesses may not be willing to invest in expanding their operations to 24 hours without a clear and consistent demand.
In addition, limited infrastructure, such as unreliable electricity and transportation, reduces businesses’ ability to scale their supply effectively during the night. If the supply-side factors, such as resources, energy, and staff, are not elastic enough to meet fluctuating demand, businesses cannot easily extend their hours.
The Need for Elasticity on Both Sides
For a 24-hour economy to work, both demand and supply need to be elastic enough to sustain round-the-clock operations. If demand is too inelastic, there will be insufficient night-time customers to justify extended hours. If supply is too inelastic, businesses will struggle to meet any increases in demand and bear the added operational costs.
In Ghana, both sides face challenges. Demand is limited due to low disposable income and necessity-driven consumption, making it difficult for businesses to rely on consistent night-time demand.
On the supply side, high costs, infrastructure constraints, and limited flexibility hinder businesses from responding to any changes in demand. Until both demand and supply become more elastic, the idea of a sustainable 24-hour economy in Ghana remains unlikely.
Why Declaring a 24-Hour Economy as Policy is Unrealistic
A 24-Hour Economy Cannot Be “Implemented” as a Policy
While policies like free education or healthcare reforms can be implemented by governments through legislation and budgetary allocations, a 24-hour economy cannot be enforced in the same way.
The idea of introducing or implementing a 24-hour economy as a policy ignores the key economic principles of demand, supply, and elasticity that shape such an economy. Unlike a policy change that can mandate services, a 24-hour economy requires the right conditions to naturally develop over time.
For a 24-hour economy to take root, businesses must see sufficient demand to justify staying open beyond normal hours. Likewise, they need to be able to supply goods and services efficiently during these extended hours.
Neither of these factors can be suddenly “forced” into existence through policy alone. A policy may encourage businesses to stay open longer, but if consumers aren’t willing or able to buy goods at those times, the extended hours will simply lead to losses for the business.
Furthermore, if businesses face significant infrastructure or financial challenges, they won’t have the flexibility to meet these demands. This makes the implementation of a 24-hour economy more about fostering the right economic environment than imposing a rule.
The graph above illustrates why a 24-hour economy cannot be implemented as a policy, using the concepts of demand, supply, and elasticity.
- Demand Curve: The blue line represents the demand for goods and services. As the price increases, the quantity demanded decreases, and vice versa. In a 24-hour economy, demand must be strong enough at all hours of the day and night to justify businesses staying open around the clock.
- Daytime Supply: The green dashed line shows the supply of goods and services during the day. Businesses can meet daytime demand relatively easily, and the supply curve rises steadily as the price increases. This is because, during the day, more people are able and willing to buy goods, making it easier for businesses to operate.
- Night-time Supply: The red dashed line represents the supply curve for night-time operations. Notice that the supply for night-time is less responsive to price increases than daytime supply. This is due to factors such as higher operational costs, limited labour availability, and lower demand. In Ghana, night-time demand is low, and businesses face challenges such as electricity shortages and security concerns.
- Equilibrium Points: The green and red dots indicate the equilibrium points for day and night operations, respectively. These are the points where supply equals demand. As seen, the night-time equilibrium occurs at a lower price and quantity than the daytime equilibrium. This shows that, under current conditions, the supply of goods and services at night is not as viable or sustainable as during the day.
- Elasticity: For a 24-hour economy to function properly, both demand and supply must be sufficiently elastic (able to respond to changes). In Ghana, demand for goods and services during the night is not elastic enough (low demand) and supply is not responsive enough (due to infrastructural and cost constraints).
The graph demonstrates that a 24-hour economy does not simply emerge because of policy. It is a natural outcome that requires demand, supply, and elasticity to be in balance, which is currently not the case in Ghana.
Emergence of a 24-Hour Economy Through Natural Economic Shifts
The development of a 24-hour economy is a gradual process that occurs when certain factors align in the economy, including urbanisation, disposable incomes, infrastructure, and changing cultural habits.
For example, as cities grow and become more populated, they tend to generate higher consumer demand, particularly in the services and retail sectors. Urban areas often see an increase in night-time activities, as people work late or need products and services during unconventional hours.
As disposable income rises, consumers may be more willing to pay for convenience, including shopping or entertainment at night.
Additionally, infrastructure developments, like reliable electricity, effective public transport, and technological advancements in e-commerce and mobile payments, play a significant role.
These systems support businesses in expanding their hours and making 24-hour operations feasible. Cultural shifts, such as changes in working hours or a growing preference for convenience, also contribute to a shift in the economy.
Over time, these changes gradually create a marketplace that naturally supports the 24-hour economy.
Political Promises Misunderstand the Complexity of a 24-Hour Economy
Politicians who promise to “bring a 24-hour economy” may be misunderstanding the complexities involved. Simply declaring that a country will operate 24/7 does not make it a reality.
It’s not enough to issue a statement and expect businesses to start operating around the clock. A functioning 24-hour economy needs a shift in demand, supply, and infrastructure, and it requires businesses to adapt to these conditions.
If political leaders fail to recognise the importance of gradual economic shifts—such as improving disposable incomes, developing infrastructure, and adapting societal behaviours—they may face challenges in fulfilling such promises.
For instance, declaring that shops will be open 24/7 in the short term without addressing electricity supply, transportation networks, and consumer demand for night-time shopping would only lead to frustration.
Similarly, a sudden shift towards 24-hour working in industries without considering the readiness of workers, businesses, and infrastructure would likely cause more harm than good.
Conclusion
A 24-hour economy cannot be simply “declared” as a policy. It’s not a decision that can be made overnight or enforced by government action. It is a natural outcome that arises when key factors like demand, supply, and elasticity come together.
Urbanisation, rising disposable incomes, and improved infrastructure create the necessary conditions for a 24-hour economy.
For this reason, political promises to introduce a 24-hour economy without addressing these underlying factors are unrealistic.
Instead of forcing the change through policy, the focus should be on fostering the right conditions for it to emerge naturally. Only then can a truly sustainable 24-hour economy be realised.
