Extending working hours without corresponding investments in technology and skills development risks increasing business costs rather than improving productivity, Dr. Daniel Anim-Prempeh, Chief Economist at the Public Initiative for Economic Development (PIED), has cautioned.
Speaking on Ghana’s ongoing discussions around boosting economic output through longer operating hours, Dr. Anim-Prempeh argued that the assumption that more hours automatically translate into higher productivity is fundamentally flawed.
“Longer hours do not necessarily mean higher productivity,” he said. “If firms are not supported with automation and a skilled workforce, what you end up with is higher operational costs and diminishing returns.”
His comments come at a time when policymakers and industry players are exploring strategies to stimulate economic growth, including proposals tied to a 24-hour economy. While such policies are often framed as pathways to increased output and job creation, Dr. Anim-Prempeh believes the focus must shift toward structural productivity reforms.
According to him, productivity gains are typically driven by efficiency improvements such as the adoption of modern technologies, streamlined processes, and a workforce equipped with relevant skills rather than simply increasing the number of hours worked.
He explained that businesses operating for longer periods would face additional expenses, including higher energy consumption, increased wage bills, and maintenance costs.
Without corresponding improvements in output per worker, these costs could erode profit margins and weaken competitiveness.
“In an environment where power costs are already a concern for many Ghanaian firms, extending working hours without efficiency gains could worsen financial pressures on businesses,” he noted.
Dr. Anim-Prempeh emphasized that automation remains a critical but underutilized lever in Ghana’s productivity agenda.
Many small and medium-sized enterprises (SMEs), which form the backbone of the economy, still rely heavily on manual processes, limiting their ability to scale efficiently.
He added that without targeted support to help businesses adopt technology, any push for longer operating hours could disproportionately burden SMEs, potentially widening the gap between large firms and smaller enterprises.
Beyond automation, the economist highlighted the importance of skills upgrading. He stressed that a workforce equipped with technical, digital, and problem-solving skills is essential for driving productivity improvements across sectors, including manufacturing, agriculture, and services.
“Skills development must go hand in hand with technological adoption,” he said. “Otherwise, even when businesses invest in new systems, they may not achieve the desired efficiency gains.”
Dr. Anim-Prempeh also pointed to the broader issue of competitiveness, noting that Ghana’s ability to compete in regional and global markets depends largely on productivity levels rather than labor intensity.
He explained that countries that have successfully improved productivity have done so by investing in innovation, education, and infrastructure, rather than relying on longer working hours.
For Ghana, he suggested that policy interventions should prioritize incentives for technology adoption, support for research and development, and stronger linkages between industry and training institutions.
He further called for a coordinated national strategy that aligns education, industrial policy, and digital transformation efforts to ensure that productivity gains are sustainable.
“Competitiveness is built on efficiency, not exhaustion,” he said. “If we want to grow the economy in a meaningful way, we must focus on how to produce more value within the same time, not just extend the time itself.”
As debates around economic transformation continue, Dr. Anim-Prempeh’s remarks highlight the need for a more nuanced approach one that places productivity and innovation at the center of Ghana’s growth strategy, rather than relying solely on longer working hours as a solution.
