The government’s flagship 24-Hour Economy Initiative is gradually moving from the drawing board to the banking halls, as the 24-Hour Economy Secretariat seeks to win the support of the financial sector for the ambitious program.
At a high-level banking roundtable in Accra, where almost all the commercial banks operating in the country were present, the secretariat laid out the vision of the program to the financial sector.
Presidential adviser on the 24-Hour Economy, Goosie Tannoh, in his address to the banking community, emphasized that the program is a private-sector-driven initiative built on organized citizen enterprise. He mentions that the program will be spearheaded by MSMEs, cooperatives, and local and international companies to power growth.
Program Planning
He added that the flagship initiative is not business as usual, as deep thinking and analysis have gone into the planning to make it bankable. He said the planning of the initiative also involved the rethinking and re-engineering of critical value chains to make projects viable.
He said, “We at the 24-hour Secretariat do appreciate the importance of bank financial development, but we needed to do the thinking and groundwork before presenting a respectable set of solutions and products to you.”
The Need for Financial Support
Goosie Tannoh admitted that without the support of the financial sector, the vision will not see the light of day. He said the productive efforts of enterprises will only succeed if they are matched by appropriate credit support and the discipline that the banking sector brings.
“Without appropriate credit support and without the discipline and guidance that the banking sector generally offers customers, enterprises seldom reach their full potential. Therefore, the 24-hour programme, based as it is on entrepreneurship, cannot ignore the banking sector and never intended to do so.
He added, “We have worked with all stakeholders and many in the banking community in developing the programme and in trying to find solutions because any entrepreneur will tell you that availability, costs, term structure, and collateral conditions of Ghana’s banking industry rank among the highest constraints to business development in Ghana.”
Feasible & Workable Projects
He emphasized that the 24-Hour Economy is not a public sector program, but one designed to unlock entrepreneurship, attract investment, and build cycles of production, distribution, profit, and reinvestment.
To do so, the Secretariat is pitching banks a package of “workable solutions” that can deliver growth profitably for both entrepreneurs and the financial sector while strengthening the banking system in line with Bank of Ghana standards.
The BoG’s Support
On its part, the Bank of Ghana assured the banking community that it remains firmly committed to creating the right regulatory environment to support the program.
Speaking on behalf of Governor Dr. Johnson Asiama, Ismail Adam, Head of the Banking Supervision Department, said the central bank’s mandate goes beyond price and financial stability to also supporting the government’s economic policy.
He maintained that no country has developed without growth in its financial sector. He added that the financial sector and the real economy are intertwined, and hence growth in one drives the other.
“A look at economic history indicates that no nation has developed without an appreciable growth in the financial sector. So both the financial sector and the real sector are intertwined. Development in the real sector influences the speed of growth of the financial sector directly while the growth of financial institutions also influences the growth of the real economy,” he indicated.
Assurance of Sound Monetary Environment
Ismail Adam further explained that the Bank of Ghana will leverage its monetary policy tools to support the initiative by ensuring stable prices, reducing inflation, and creating room for lower interest rates that enhance credit access for businesses.
Additionally, the Bank of Ghana pledged to maintain a sound and resilient banking sector through strict supervision, enforcement of prudential regulations, and insistence on strong corporate governance and risk management standards. This, Ismail Adam said, will safeguard public confidence in the financial system, boost investor trust, and enable banks to lend safely in support of the 24-Hour Economy.
“The success of this policy is hinged on the safety and soundness of the banking sector, as I’ve already said. As a regulatory advisory authority, we remain committed to safeguarding the public’s confidence in the banking system. This is achieved through regular supervision of regulatory financial institutions and enforcement of prudential regulations to get banks’ operations aligned with international best practices,” he pledged.
He added, “A stable and resilient banking environment boosts investor confidence, making it easier for businesses and individuals to engage with financial institutions and access banking services across the country.”
The Bottomline
The roundtable was a crucial step in connecting the vision of the initiative with financing. The Secretariat is asking banks to see the initiative not as a government program but as a business opportunity where they can expand credit, introduce new products, and innovate new financing models, which can unlock growth for enterprises and profitability for banks.
With this initiative, the banks are called to be partners of the program, and from the regulator’s side, the assurance is far-reaching as the financial sector needs to be stable enough to power, arguably, one of the country’s most ambitious economic transformation agenda yet.
