Today, November 7, 2024, Dr. Mahamudu Bawumia, the New Patriotic Party (NPP) flagbearer, is set to launch Ghana’s first national credit score system, a groundbreaking initiative aimed at transforming the financial landscape of the country. This pioneering move is expected to empower Ghanaians with increased access to credit, enabling them to make purchases on credit and pay in manageable installments.
By broadening access to financial resources, this system is set to be a major step towards achieving a more economically inclusive Ghana.
Dr. Bawumia first hinted at this upcoming credit score system during a recent visit to Yeji in the Pru East district of the Bono Region. During his visit, he emphasized that this initiative aligns with his vision for a financially inclusive and economically empowered Ghana. For many Ghanaians who have been excluded from traditional financial services, this credit score system represents new possibilities, allowing them to participate more actively in the economy.
Throughout his campaign, Dr. Bawumia has consistently advocated for transformative policies that tackle everyday challenges faced by Ghanaians while enhancing their prospects for growth and success.
The introduction of the credit score system underscores his commitment to such policies, particularly those that provide opportunities for individuals who traditionally struggle to access credit. For him, this system is not just a financial tool, but a significant step towards enabling Ghanaians to thrive within an economy that values their financial participation.
At the core of this new system is a personalized credit score for every Ghanaian. Dr. Bawumia explained that, currently, Ghana lacks an effective credit scoring system, which means that financial institutions perceive all borrowers as high-risk.
This perception results in higher interest rates, making loans less accessible for the average Ghanaian. The new credit score system aims to change that by tracking and assessing individuals’ credit histories. Through this system, those who demonstrate responsible repayment behavior will be able to secure loans more easily, with potentially lower interest rates as a reward for their creditworthiness.
With this individualized approach, Ghanaians who maintain positive credit records will be in a better position to access financing options, while those with lower scores will have an incentive to improve their credit habits. “That credit scoring system, every individual will have a credit score,” Bawumia explained. “Right now, our credit scoring system does not exist. So everybody is seen as risky, and the interest rates are high. But we are going to move into individualized credit scoring. So, if you don’t pay your loan, you have low credit scores, isn’t it? And if you go for a loan, you will have a problem.”
In establishing this framework, Bawumia aims to create a fairer system that benefits both individuals and businesses, promoting economic accessibility and financial inclusion across the country. His initiative stands to reduce the barriers faced by countless Ghanaians who are eager to engage in the formal economy but lack the means to do so. The credit score system is expected to make it possible for people from diverse economic backgrounds to make essential purchases, plan for future expenses, and engage in long-term financial planning.
As Dr. Bawumia launches this national credit score system, he envisions a Ghana where financial opportunities are available to all, not just a privileged few. By offering a mechanism to evaluate creditworthiness fairly and transparently, he believes that this system will foster a stronger, more inclusive economy that uplifts every Ghanaian.
