Buying Phone and Paying in Instalments is not an impossibility: NPP Finland Addresses Dr Bawumia’s Statement in yet-to-be-launched Book

The cacophony on social media, aiming to undermine Dr. Bawumia's promise to enhance instalment payment systems for phones and other items, is both alarming and revealing. Dr Bawumia’s figurative statement that Ghanaians can buy phones and pay in 1 Cedis, 2 Cedis little instalments should not be misinterpreted by little unhinged, pea-brained, visionless political charlatans. He simply meant buying and paying in little instalments. Dr. Bawumia's vision for accessible and inclusive financial policies is a game-changer, not just an empty slogan. This bold strategy of Dr Bawumia is meticulously outlined in the soon-to-be-released book "Audacity of Possibilities," authored by the NPP Finland Branch. This book is a testament to his competence and audacious plans for the future. Dive into the excerpts which provide a thorough rebuttal to the skeptics and discover why Dr. Bawumia's policies are not just visionary, but essential for progress.

‘‘Ghana's economy depends a lot on consumer spending, which helps many different types of businesses. But there's a big problem: many people and businesses struggle because there is an absence of a robust credit system. Without being able to borrow money or having access to consumer credit, lots of Ghanaians can't buy basic things like TVs or furniture. Access to consumer credit is important because it allows people to buy things and pay in little monthly instalment if they don't have all the money right away, and this serves as a linchpin or helps the economy to grow in countries with such schemes. But in Ghana, there is the absence of comprehensive credit framework, so it is hard for people to buy things on credit, which limits what they can do. Nonetheless, with Dr. Bawumia championing the Ghana Card, there exists a prospect to revolutionize Ghana's credit landscape. This could make borrowing money easier and change positively how people buy things in Ghana.

Dr. Bawumia's policy idea to introduce a credit system aims to boost financial empowerment among citizens. Leveraging the Ghana Card, the national identification system is key to this initiative to streamline credit transactions. By adopting a credit system similar to what pertains in most western countries, Ghana could overcome major hurdles hindering consumer and business activities. This policy idea addresses the absence of a formal credit infrastructure in Ghana. We will further outline the potential benefits and highlight the role of the Ghana Card in facilitating this transition.

In Ghana, buying things mostly works like this: you need to have all the money upfront or borrow from friends or family before you can buy anything, whether it's a big item like a car or smaller things like a fridge or TV. Imagine a taxi driver or a hairdresser who doesn't have much money saved up but wants to buy a new phone, TV, fridge, and furniture for their home. It might take them about two years to save enough money to afford all these things. But in Europe, someone doing a similar job can buy all these things without having saved up a lot of cash. How come? Well, in places like Europe and North America, they have something called a credit system. This system allows people to buy things even if they don't have all the money right away. They can pay for things over time. This is possible because of something called a national identification system. By now we are sure you understand Dr. Bawumia’s fixation on a robust national identification system being implemented by the National Identification Authority (NIA). With access to credit, people can buy expensive things without having to save up for months. This helps businesses because it means more people can buy their products, which boosts the economy.

Some people doubt whether the Ghana Card can be used for buying things on credit. This doubt comes from not understanding how the Ghana Card works and what it can do. Let's clear this up: the Ghana Card doesn't work alone. It connects with existing financial infrastructure, including banks, credit bureaus, and payment services. The Ghana Card holds a lot of personal information, like fingerprints and your address. When you use it to buy something on credit, sellers can make sure you are really you, that is, merchants can accurately verify and identify you. This helps stop fake deals and makes people trust buying things on credit more.

The information on the Ghana Card helps banks and shops decide if you're good at paying back money you borrow, or goods given to you on credit. With your Ghana card connected to your bank account and credit bureaus, merchants can know whether you are employed, your ability to pay back loans or goods given on credit and your history of credit repayment. This helps banks, other lenders, and merchants to make smart choices about giving out loans or goods on credit, so there's less chance of people not paying back what they owe.

Also, the Ghana Card promotes financial inclusion by offering individuals a formal means of identification and access to financial services. This is especially advantageous for marginalized populations, such as rural communities and low-income earners, who previously lacked access to formal banking services.

Without a proper system for borrowing money, people often have to turn to informal lenders who charge very high interest rates. This makes it hard for those with low incomes or in marginalized communities to get loans because they might not meet the strict rules or have anything valuable to offer as collateral. Also, without a standardized credit scoring mechanism to check how good someone is at paying back loans, it's risky for shops or banks to give any item or money on credit. So, they might make it harder to get loans or stop lending altogether. This makes it tough for people to take part in the economy and makes it harder for new businesses to start up.

In essence, Dr. Bawumia's bold solution of robust consumer credit system and individualised credit scoring through credit bureaus offers a pathway to empower individuals financially, boost economic growth, and foster inclusive development in Ghana. Through the implementation of a comprehensive credit framework, facilitated by the Ghana Card, Ghana can unlock new opportunities and thrive in the global economy.’’

Dr. Bawumia stands as a visionary leader armed with transformative, realistic policy ideas for our country. Unlike Mahama, who flounders in a sea of inadequate policies, Dr. Bawumia has the foresight and capability to drive real change. His plan for a robust consumer credit system, supported by reliable identification, mirrors the success seen in the US, Canada, Australia, and Europe. These regions empower their citizens to purchase cars and homes on credit, paying in manageable instalments. Under Dr. Bawumia’s leadership, buying a mobile phone on instalment is one of the least possibilities.

With Dr. Bawumia, it is possible.
BY James McKeown
Chairman, NPP Finland Branch