CREDIT SCORE-BASED CONSUMER CREDIT IN GHANA: Addressing Youth Unemployment, Economic Fundamentals, and Legal Challenges.
INTRODUCTION Dr. Mahamudu Bawumia, the Vice President of Ghana, has proposed an ambitious initiative to implement a national credit scoring system. This system aims to make consumer products, particularly mobile phones, more accessible to the youth by allowing them to purchase these items on credit with monthly payments as low as GHS1 or GHS2. The goal is to evaluate individuals' creditworthiness based on their financial behaviour, thus enabling them to buy items according to their financial capacity and extend this credit system to other sectors such as automotive and home electronics. A key aspect of this initiative is the integration of the Ghana Card with various databases to facilitate comprehensive credit evaluations. According to Dr. Bawumia, this integration will allow individuals to use their Ghana Card to access credit facilities, making it easier to trace and verify credit history across the country. This approach mirrors systems used in more developed markets, whe...