Dr. Mahamudu Bawumia
The Vice President, Dr. Mahamudu Bawumia, has announced that the government is set to roll out the individualised credit scoring system for all citizens by the end of 2024.
This transformative initiative is set to reshape Ghana’s financial landscape, ensuring that credit becomes more accessible and affordable for both individuals and businesses nationwide.
Speaking at the International Youth Day celebration under the theme, “From Clicks to Progress: Youth Digital Pathways for Sustainable Development,” held at the Pentecost Convention Centre in Kasoa, Dr. Bawumia emphasised the significant impact of this new credit system, referring to it as a ‘game changer’ for Ghana’s economy.
He explained that it would enable lenders to evaluate creditworthiness by considering individual credit histories, rather than relying on collateral or other traditional forms of security.
“This system will open up new opportunities for individuals and small businesses to access credit, which in turn will drive economic growth and job creation,” Dr. Bawumia stated.
He further elaborated on the benefits, explaining, “We are shifting from a cash-based system to a credit-based one, where credit scoring will enable lenders to make informed decisions.
“This means that someone like a hairdresser who has just completed training, can purchase equipment on credit and pay in small installments over time. The same applies to carpenters and other professionals,” he explained.
Dr. Bawumia stressed that this change would boost economic demand, resulting in job creation as businesses grow to satisfy emerging needs.
“By establishing this credit system, we are greatly expanding opportunities. This initiative is a key element of our digitalisation strategy, and we are determined to see it through by the end of 2024,” he confirmed.
In addition to the individualised credit scoring system, Dr. Bawumia revealed plans to digitalise the country’s land registry and titling process.
This initiative is expected to modernise the way land ownership is recorded and managed, reducing disputes, increasing transparency, and enhancing access to credit for individuals and businesses.
Dr. Bawumia pointed out that this system will allow anyone to access land ownership information with just a click on their mobile phone.
“This will eliminate disputes, litigation, and the need for land guards. It’s a crucial move towards modernising and streamlining our land registration system,” he remarked.
The introduction of the individualised credit scoring system and the digitalisation of land registration are key components of Ghana’s broader digitalisation agenda. With this, the government aims to leverage technology to drive economic growth, improve public safety, and enhance the overall quality of life for its citizens.
A Daily Guide Report