Ghana's government is working on developing a credit system - Veep.
According to Vice President Mahamudu Bawumia, the government is working on developing a credit system in Ghana with Credit Scoring by Credit Reference Agencies.
He stated that key anchors such as the Ghana Card would provide a unique identity as well as essential information about the bearer such as bank accounts, SIM cards, SSNIT, NHIS, and many others.
He stated that the National Digital Property Address System would also provide a definite location for the borrower, and that the necessary measures to enable credit scoring had already been put in place.
A credit reference agency is an independent organisation that securely holds data including one’s credit applications, accounts, and financial behaviour.
The data is then used to generate a credit score, stating one's creditworthiness, and helping to determine how much, if any premium should be put on any application for a loan or hire purchase.
Vice President Bawumia announced this at the opening ceremony of the 18th Biennial Connexional Youth and Students Assembly (YASA) of the Methodist Church of Ghana at Nyanyano in the Central Region on Friday.
The Vice President said what made some countries appear more developed was the systems they had put in place to ensure life became easier and simpler, noting that, Akufo-Addo's administration since it assumed office had been working hard to leverage technology, to infuse digitization into everyday life for accelerated development.
“We are changing the economy; we are changing the system.
"The reason things seem to work in the developed countries is that they have systems and institutions that work. We are the same human beings across all the continents, but they have systems that are working, and it is those systems that we are putting in place in Ghana," he stated.
"Those systems that will make sure that you cannot hide, and you go and commit a crime, or not pay a loan, and nobody will find you.
"The system we are putting in place in Ghana is very transparent and open; it will reduce corruption, improve the efficiency of public service delivery, lower the cost of doing business, and reduce bureaucracy," he added.
He stated that Ghana would have a credit system by the end of the year because it had linked all bank accounts to the Ghana Card, allowing Credit Reference Agencies to conduct credit scoring in the country.
“Credit scoring would allow every individual to have a unique credit score. You will be able to check your own credit score with your national ID. If you are someone who does not pay back loans you will have a very low credit score and the banks will not lend you money.
"If you are someone who pays you will have a high credit score, you will have a lower interest rate, and the banks will lend you money,” Dr Bawumia explained.
We are building this economy, this new system that will benefit everyone because the old system did not have transparency, but the entire society paid for this lack of transparency. For example, we have high interest rates.
"However, we have put in place the necessary systems through digitization, so that now tertiary students can get loans without guarantors." In the future, depending on your credit score, you may be able to obtain a low-interest loan, purchase essential items such as refrigerators, cars, and other household accessories on credit, and even secure mortgages," Dr Bawumia told the audience.