The Africa Policy Lens (APL) has issued a strong critique of FUND24, describing it as the weakest and riskiest component of former President John Dramani Mahama’s proposed 24H+ economy policy.
Also Read
In a comprehensive policy review, APL argues that FUND24, meant to provide affordable capital for small businesses, support infrastructure development, and drive job creation, is structurally unsound and unlikely to deliver on its promises due to flawed assumptions and financial risks.
“FUND24 was sold as a bold transformation strategy,” APL noted, “but behind the grand design lies a shaky framework that cannot support the weight of Ghana’s 24-hour economic ambitions.”
Overreliance on External Financing
FUND24 aims to raise $4 billion by 2030 through blended finance models involving the Development Bank Ghana (DBG), the Venture Capital Trust Fund (VCTF), and the Ghana Infrastructure Investment Fund (GIIF). However, APL cautions that the initiative relies too heavily on external donors and international finance institutions, many of whom view Ghana as a high-risk environment.
With Ghana’s public debt standing at $49.5 billion (55% of GDP) as of March 2025 and its history of missed infrastructure funding allocations, APL doubts that foreign partners will back such an ambitious plan.
Currency and Pension Fund Concerns
APL also flagged the dangers of currency mismatch. It warned that borrowing in dollars and lending in cedis could cause widespread defaults if the cedi depreciates again, citing the 40% currency crash in 2022 as a clear warning.
More critically, the think tank condemned the idea of using Ghana’s GHS 42 billion pension fund to back high-risk SME ventures.
“That’s not bold, it’s reckless,” the review said. “Pensions are meant to protect retirees, not bankroll fragile startups. A single failed investment could wipe out a generation’s retirement savings.”
Infrastructure and Digital Track Dubbed Unrealistic
The group questioned the feasibility of building the proposed Agbledu industrial parks, citing Ghana’s disorganized land tenure system, where 80% of land is informally held, as a major obstacle.
As for FUND24’s digital loan platform, APL called it overly optimistic.
“Only 58% of Ghanaians are online. You can’t run a digital loan portal on dreams when nearly half the population is digitally excluded.”
Policy Recommendations
To make the 24H+ economy workable, APL urges the government to:
- Develop a homegrown financing model less reliant on donors.
- Use diaspora bonds to tap into Ghana’s $4.7 billion annual remittances.
- Encourage local giants like MTN, Dangote, and GOIL to co-invest in infrastructure.
- Reform land laws to support industrial growth.
- Promote local-currency lending and set safer limits for pension investments, similar to South Africa’s Regulation 28.
Conclusion
“FUND24 is not just flawed, it’s dangerous,” APL concluded. “Without urgent corrections, it could derail the entire 24-hour economy agenda and become another failed policy dream.”
Read also: IMF approves $370m for Ghana after fourth ECF review » Awake News
