Government to introduce individualized Credit Scoring System by end of 2024 – Bawumia

The Vice President of Ghana, Dr. Mahamudu Bawumia, has announced that the government is set to introduce an individualized credit scoring system for all citizens by the end of 2024.

This groundbreaking initiative is poised to revolutionize Ghana's financial sector by making credit more accessible and affordable for individuals and businesses across the country.

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 Center in Kasoa, Dr. Bawumia highlighted the transformative potential of this new credit system. He described it as a "game-changer" for Ghana's economy, which will allow lenders to assess creditworthiness based on individual credit histories rather than requiring collateral or other 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."

Dr. Bawumia emphasized that this shift would stimulate demand in the economy, leading to job creation as businesses expand to meet new needs. "By developing a credit system, we are significantly increasing opportunities. This is a crucial part of our digitalization agenda, and we are fully committed to making it a reality by the end of 2024," he affirmed.

In addition to the individualized credit scoring system, Dr. Bawumia revealed plans to digitalize the country’s land registry and titling process. This initiative is expected to modernize the way land ownership is recorded and managed, reducing disputes, increasing transparency, and enhancing access to credit for individuals and businesses.

"With this system, anyone will be able to access information on land ownership with just a click on their mobile phone. No more disputes, no more litigation, no more land guards. This is a critical step towards modernizing our land registration system and making it more efficient," Dr. Bawumia noted.

The introduction of the individualized credit scoring system and the digitalization of land registration are key components of Ghana's broader digitalization agenda. Via this, the government aims to leverage technology to drive economic growth, improve public safety, and enhance the overall quality of life for its citizens.