Fund24 in the Hot Seat: Africa Policy Lens Doubts Feasibility of Mahama’s 24‑Hour Economy Initiative
Fund24 in the Hot Seat: Africa Policy Lens Doubts Feasibility of Mahama’s 24‑Hour Economy Initiative
Fund24—the multibillion‑dollar vehicle meant to bankroll President John Mahama’s 24‑Hour‑Plus (24H+) economy—is facing sharp criticism from the Africa Policy Lens (APL). In a new brief, the think‑tank warns that the fund’s heavy reliance on foreign money, a shaky macroeconomic backdrop and risky local‑currency dynamics could sink the entire plan.
What Fund24 Promises
Marketed as an “ambitious strategy for transformation,” Fund24 aims to raise US $4 billion by 2030 through blended finance. Cash would flow into three pillars:
- Enterprise financing – via the Development Bank Ghana (DBG) and the Venture Capital Trust Fund (VCTF)
- Infrastructure development – through Ghana Infrastructure Investment Fund (GIIF) special‑purpose vehicles (SPVs)
- Technical assistance – delivered by a new 24H+ Secretariat
On paper, it sounds like a catalytic machine for SME credit, job creation and big‑ticket projects.
APL’s Core Concerns
The APL calls that glossy narrative “a fragile foundation.” Their headline worries:
- Debt overhang & DFI fatigue
- Public debt hit US $49.5 billion (55 % of GDP) in March 2025.
- Ghana received zero of the US $3.59 billion Sub‑Saharan Africa infrastructure pot in 2022.
- DFIs “lack confidence,” so Fund24’s pipeline may dry up.
- Cedi‑dollar mismatch
A 40 % currency slide in 2022 means dollar loans on DBG’s books could implode if borrowers default in cedis. - Pension‑fund peril
“You do not gamble GHS 42 billion of retirees’ savings on high‑risk SME equity,” APL writes. “One mis‑judged bet could jeopardize an entire generation’s security.” - Land & legal bottlenecks
Agro‑industrial “Agbledu parks” depend on land that is 80 % informally owned—a legal maze for investors. - Digital‑loan “illusion”
A loan portal can’t reach everyone when only 58 % of Ghanaians are online. “That’s not a digital revolution; it’s a digital illusion,” APL argues.
What the APL Recommends
“If the government genuinely aims for a 24‑hour economy, it must establish a domestic financing model that is not reliant on foreign lenders or imaginary SPVs.”
Key proposals include:
- Tap local capital markets with Reg‑28‑style limits to keep pension allocations low‑risk.
- Issue diaspora bonds to capture part of the US $4.7 billion in annual remittances.
- Court heavyweight domestic corporates—MTN, Dangote, GOIL—to co‑invest in projects.
- Prioritise comprehensive land‑tenure reform and stick to cedi‑denominated lending.
The Bottom Line
The APL sums it up starkly:
“Fund24 is not only problematic; it poses significant risks in its present state … Situated on fragile assumptions, excessively reliant on DFIs, and oblivious to Ghana’s actual circumstances, it represents the most vulnerable foundation of the entire 24H+ economy. If immediate changes aren’t made, it will become just another entry in the list of failed economic dreams in Ghana. Remember SkyTrain?”
Whether Fund24 can be re‑engineered—or joins the scrap‑heap of abandoned mega‑projects—now sits at the heart of Ghana’s 24‑hour‑economy debate.
What’s your take on Fund24? Bold vision—or risky bet? Share your thoughts below.
