Africa Policy Lens (APL) basically just ripped into Mahama’s big 24H+ economy plan specifically this FUND24 thing that’s supposed to bankroll the whole deal. On paper, FUND24 is meant to be the fuel for affordable loans, huge infrastructure, and a truckload of new jobs for Ghanaians. Sounds dreamy, right? Well, APL’s not buying it.
In their deep-dive, they pretty much called the whole setup wobbly. The big issue? FUND24 leans way too hard on cash from outside Ghana, which, let’s be real, isn’t exactly a steady lifeline these days. According to APL, this makes it totally out of sync with the idea of a true 24-hour Ghanaian economy.
Here’s the quote that pulled no punches: “FUND24 was hyped up as this bold, game-changing strategy for Ghanaians cheap loans, epic infrastructure, jobs galore. But, honestly, scratch the shiny surface and it’s as shaky as a Jenga tower in an earthquake.” Ouch.
Let’s talk about the nuts and bolts: FUND24 wants to juggle three things financing businesses (with DBG, VCTF), building stuff (using GIIF’s SPVs), and dishing out some technical help (from the 24H+ Secretariat). The target? Haul in $4 billion by 2030. From blended finance and foreign investors, no less. Sure, it’s ambitious. But APL flat-out says it’s a mess structurally, and nowhere near what Ghana needs for this 24-hour economy dream.
Now, the big, glaring problem: Ghana’s debt. Seriously, it’s ballooned to almost $50 billion, over half the GDP. International lenders? They’re giving Ghana the side-eye. In 2022, out of all the infrastructure cash doled out in Sub-Saharan Africa, Ghana got zilch. Not even a slice. So, if you’re banking on DFIs coming to the rescue, good luck FUND24’s cash pipeline dries up fast.
And, get this: the cedi tanked by 40% in 2022. So, if the Development Bank of Ghana borrows in dollars and lends in cedis? That’s a one-way ticket to Default City. The program could drown in bad loans.
Then comes the wildest part pension funds. The plan wants to toss GHS 42 billion of pension money into risky SME equity. I mean, who thought that was a good idea? Pension funds are supposed to keep grandma eating fufu, not bankroll a bunch of shaky startups. One bad bet, and poof an entire generation’s retirement goes up in smoke.
APL also trashed the infrastructure and digital loan plans. The Agbledu parks? Good luck. Ghana’s land system is a circus over 80% held informally, basically untraceable. So building anything is a bureaucratic nightmare.
And this so-called digital loan revolution? FUND24 thinks everyone’s plugged in, but only 58% of Ghanaians are even online. That’s not a digital revolution, that’s wishful thinking. You can’t give loans through thin air.
So, what’s APL’s advice? Ditch the foreign funding obsession. Build something homegrown. Tap into Ghana’s own capital markets. Sure, let pension funds help, but only with safe bets like how South Africa does it. Oh, and maybe start issuing diaspora bonds to scoop up some of that $4.7 billion in remittances flying in every year.
Instead of chasing imaginary foreign investors, why not get big local players MTN, Dangote, Ghana Oil on board? And for crying out loud, fix the land mess and push for loans in local currency if you want real financial inclusion.
Bottom line? According to APL, FUND24 isn’t just flawed it’s downright dangerous as it stands. Built on sand, propped up by wishful thinking, and blind to what’s actually happening in Ghana, it could topple the whole 24H+ plan. If things don’t change quick, FUND24’s just going to be another name on the long list of failed Ghanaian economic schemes.