Why rural development is crucial for 24-hour economy vision

On January 7, 2025, President John Mahama began his second term of office to lead Ghana on its path to prosperity.

A major plank of President Mahama and the National Democratic Congress (NDC) is the ambitious 24-hour Economy policy, aimed to set a transformative vision for Ghana’s economic future.

Built on the pillars of macroeconomic stabilisation and infrastructure development, it promises to enhance enterprise and labour productivity, especially in 12 priority sectors.

The recent renaming of Ghana's Ministry of Local Government and Rural Development to the Ministry of Local Government, Chieftaincy and Religious Affairs risks sidelining rural development.

This shift is not just administrative or symbolic but could undermine efforts to uplift rural communities, exacerbating inequalities and leaving them behind.

For the 24-hour Economy vision to succeed, a deliberate focus on rural development is crucial to ensure rural areas contribute to ― and benefit from ― this transformative policy.

With 43.3 per cent of Ghanaians living in rural areas and 39.5 per cent of rural dwellers in poverty, rural development is vital.

Targeted policies can address disparities, as rural children face 44.5 per cent poverty compared to 9.8 per cent in urban areas.

Rural areas are home to a significant portion of Ghana’s population and are integral to sectors central to the 24-hour economy, such as agro-processing, manufacturing, transportation, sanitation, and health services.

These communities are the bedrock of Ghana’s agricultural output, which not only sustains domestic consumption but also drives exports.

Failing to prioritise rural development risks alienating these communities and losing the critical input they provide.

Deliberate focus

A deliberate focus on rural development is also key to ensuring that the infrastructure backbone of the 24-hour economy ― roads, stable energy, irrigation systems and digital networks ― reaches every corner of Ghana.

Many rural areas remain plagued by poor road networks, limited access to electricity, unreliable internet connectivity and insufficient irrigation infrastructure. Addressing these challenges is not just a moral imperative; it is an economic necessity.

A 24-hour agro-processing industry, for instance, cannot thrive if the raw materials from rural farms are stuck due to bad roads or if factories lack reliable electricity.

The argument for rural development extends beyond infrastructure. Rural development unlocks untapped labour and entrepreneurial potential, creating jobs, reducing rural-to-urban migration and stimulating local economies.

With targeted rural programmes, metropolitan, municipal and district assemblies (MMDAs) can drive sustainable livelihoods, aligning with the NDC’s vision of local economic development and ensuring rural communities thrive within this transformative policy.

Inclusive growth

Rural development is also crucial for achieving inclusive growth and addressing Ghana’s significant unemployment challenge.

The 24-hour economy will thrive only if it harnesses the full productive potential of the nation’s workforce. 

Rural Ghana is home to a large pool of young people eager for employment opportunities. Equipping them with skills through technical and vocational training, and creating industries in their districts, will ensure that they are not left behind in this economic transformation.

Moreover, prioritising rural development is essential for achieving the Sustainable Development Goals (SDGs). Goals such as poverty eradication (SDG 1), zero hunger (SDG 2) and reduced inequalities (SDG 10) are deeply intertwined with the well-being of rural communities.

A focus on rural development ensures that the 24-hour economy policy does not merely drive growth in urban centres but also uplifts the rural poor, thereby fostering equitable development across the nation.

Conclusively, rural development must be central to Ghana’s 24-hour economy vision. It is not a peripheral issue, but a cornerstone of the policy’s success.

By investing intentionally in rural communities, the government will ensure that the benefits of the 24-hour economy reach every Ghanaian, unlocking the full potential of the nation and creating a truly inclusive and sustainable economy.

This is why the recent renaming of Ghana’s Ministry of Local Government and Rural Development to the Ministry of Local Government, Chieftaincy and Religious Affairs is a misstep that needs to be corrected to ensure that rural development becomes central, not peripheral, to President Mahama’s administration. 

The writer is a Sustainability Consultant; Research Fellow, Bureau of Integrated Rural Development (BIRD), Kwame Nkrumah University of Science and Technology, Ghana.

E-mail: aaarhin@knust.edu.gh