AGI Reports Resilient Business Confidence as 24-Hour Economy Implementation Gains Momentum under Mahama Administration

Business confidence in Ghana remains remarkably resilient in 2026, with the Association of Ghana Industries (AGI) reporting an index of 108.7. This represents a slight dip from the 109.5 recorded in the first quarter, yet the overall sentiment among local firms remains optimistic. According to the AGI’s latest survey, 42% of businesses reported improved performance, while 72% anticipate growth in the near future. This resilience is observed despite persistent challenges such as high electricity costs—affecting 19% of businesses—limited access to credit, and rising inflation, which reached 4.1% in the second quarter due to external factors. A significant factor in the long-term outlook is the government’s 24-Hour Economy policy, a flagship initiative of the John Mahama administration. AGI CEO Seth Twum Akwaboah has expressed strong support for the policy, labeling it a potential game changer for Ghana's industrial sector if implemented effectively. However, the AGI has cautioned that the policy must move beyond slogans to focus on concrete interventions and thorough consultations with industry stakeholders. Akwaboah emphasized that the transition to a 24-hour cycle will not happen overnight and requires a clear blueprint similar to the One District, One Factory initiative to define specific programs and activities that stimulate activity outside traditional hours. In addition to policy discussions, the AGI is actively negotiating with the Ministry of Finance regarding a critical tax dispute involving Accra Brewery Limited (ABL). The Association maintains that this issue is an industry-wide concern, particularly for manufacturers who rely on locally sourced materials. The AGI is advocating for the preservation of the sliding scale tax regime, which incentivizes local production and strengthens supply chains. CEO Akwaboah clarified that while the government seeks to maximize revenue, it is essential to protect local manufacturers from unintended consequences that could stifle production capacity and lead to increased competition from imports. Looking ahead, the AGI remains committed to collaborating with the 24-Hour Economy Secretariat and the Ministry of Finance to ensure a stable macroeconomic environment. The association highlights that addressing unfair trade practices and reducing the cost of raw materials will be vital for sustaining growth in the second half of the year. By balancing revenue-generating tax policies with industrial incentives and the expansion of operational hours, the business community believes Ghana can bolster its local production capacity and achieve a more robust economic transformation.