‘Ghana Card for cars’: Bright Simons ‘fact checks’ Bawumia over claim ‘Ghana has no credit-scoring system’

A vice president of IMANI Africa, Bright Simons, has rejected an assertion by Vice President Dr Mahamudu Bawumia that Ghana currently doesn’t have a credit-scoring system.

The vice president, in his submission, added that the Ghana Card will be used to create one to allow Ghanaians to have access to credits to purchase cars.

However, according to Bright Simons, Ghana has a credit-scoring law enacted in 2010 and currently has two credit-scoring companies with over 5 million Ghanaians on the system.

He added that even though the current system has some challenges, the Ghana Card cannot be the solution.

“The veep's claim that Ghana has NO credit-scoring system, so Ghana Card will play that role is STRANGE. Ghana introduced credit scoring in 2010 (a law passed in 2007). It had 3 licensed credit bureaus. It now has 2. As at 2019, 5.1m Ghanaians were captured with 2.8m checks.

“Credit scoring has challenges that have nothing to do with an ID card. That's why Hudson stopped operating. Most of the challenges are known. Handing the sector over to Ghana Card investors won't solve those challenges. Question: Why has growth in checks fallen since 2017?” he wrote.

The IMANI vice president also indicated that even though Dr. Bawumia has succeeded in raising the importance of technology in Ghana, some people are using his instance on the Ghana Card to enrich themselves.

"Repeating: It's nice that Ghana has a veep who has raised the profile of tech. But this constant attempt to undermine what exists so that Ghana Card can replace them & its private investors make a lot of money is very problematic. Ghana Card has become a profit-chasing OCTOPUS."

What Dr Bawumia said:

Vice President Dr. Mahamudu Bawumia announced plans for Ghanaians to access credit and purchase cars using the Ghana Card and the ongoing digitalization of the economy.

Speaking at the 57th Congregation of the Kwame Nkrumah University of Science and Technology (KNUST) on November 24, he revealed ongoing discussions with local automobile companies, including Solar Taxi, to facilitate this initiative.

"The Ghana Card will also become the anchor for a credit system in Ghana, and it will take a couple of car manufacturers in Ghana, notably Solar Taxi, to give cars on credit to people," asaaseradio.com quoted Bawumia as having said.

He stressed that the Ghana Card would be the sole requirement for transactions, enabling individuals to acquire cars and pay over time.

The vice president also disclosed plans to introduce a credit scoring system for individuals in 2024.

This system, he said, aims to provide a credible credit history for individuals, enhance the financial sector, address trust issues, reduce the cost of doing business, and promote financial discipline.

"Ghana 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 we are seen as risky," he added.

View his post below:

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Repeating: it's nice that Ghana has a Veep who has raised the profile of tech. But this constant attempt to undermine what exists so that Ghana Card can replace them & its private investors make a lot of money is very PROBLEMATIC. Ghana Card has become a profit-chasing OCTOPUS

— Bright Simons (@BBSimons) November 28, 2023

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Credit scoring has challenges that have nothing to do with an ID Card. That's why Hudson stopped operating. Most of the challenges are known. Handing the sector over to Ghana Card investors WON'T SOLVE those challenges. Question: why has growth in checks fallen since 2017? pic.twitter.com/dY5g7HJnop

— Bright Simons (@BBSimons) November 28, 2023