Individual credit scoring regime will positively affect the life of every Ghanaian – Miracles Aboagye

A Presidential Staffer, Mr Dennis Miracles Aboagye, has indicated that the Individual Credit scoring regime that Vice President Dr Mahamudu Bawumia is proposing will positively affect the life of every Ghanaian.

Dr. Bawumia announced at the 57th congregation of the Kwame Nkrumah University of Science and Technology that Ghana will introduce a credit scoring system next year to allow Ghanaians access to personal loans and also help financial institutions control the allocation of risks and costs with their clients.

It was his view that the credit system would ensure discipline in the payment of loans.

“Ghana early next year will be introducing a credit scoring system for individuals. Every individual will have a credit score. 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 go into individualized credit scores. So, if you don’t pay your loan, you will have no credit score and you will have a problem when you go for a loan. But if you are diligent in paying your loans you get your high credit score and you are likely to get lower interest rates. This will bring more discipline,” he said.

Dr Bawumia’s policy proposal received flak from some analysts including Vice President of Imani Africa Bright Simons and a professor at the University of Ghana, Kobby Mensah who cast doubt on the ability to roll out such a policy.

In a post shared on X on November 28, 2023, Prof Mensah asked why the Ghana Card is not being used to acquire vehicles because there are garages in Ghana already.

“Are we not in Ghana? Are there no garages in Ghana? If the answers to these questions are yes, then the case is simple. Take your Ghana card to CFAO to pick up a Mercedes and let’s prove the theory,” he wrote

But Mr Mircales Aboagye also wrote on his X platffom that Nearly every facet of a person’s financial life is impacted by the strength of their credit score, from loan and mortgage applications, and even something as essential as car loans.

“Access to Cheaper credit and ease of access to these credit facilities. @thebankofghana, clearly indicates in their 2022 credit reporting Activity annual report, Paragraph 2.6, indicates that, they have just started discussions with the credit bureaus on the processes leading to the introduction of a credit scoring to complement the current credit reports provided by the credit bureaus.

“The Bank of Ghana goes on to indicate that, this is happening on the back of the introduction of the Ghana card which provides a unique identifier for credit information subjects. @MBawumia confirms the BOG Report that, from next year, this discussion will yield full fruiting and Ghana can also have a more universal and credible credit scoring system for all citizens.”

*PUBLIC INFORMATION*

Individual Credit scoring regime will positively affect the life of every Ghanaian.

Nearly every facet of your financial life is impacted by the strength of your credit score, from loan and mortgage applications, and even something as essential as car… pic.twitter.com/raaZVNs7dc

— Dennis Edward Aboagye (@DennisMiracles) November 30, 2023