Broadcaster Dr. Randy Abbey has cautioned against viewing a credit score system as a quick fix for Ghana’s economic challenges. Speaking on Good Morning Ghana, he emphasized that while beneficial, the system is not a standalone solution.
“Credit scores can help, but they aren’t a magic wand,” Abbey said. “They benefit those who are economically active. Without jobs, credit cards are useless because people can’t repay their debts.”
Abbey stressed the importance of a productive environment where people can earn and repay credit. “We need an environment where people are productive and can take up credits,” he said. “That’s the only way to build credit.”
He also highlighted the challenges associated with credit systems. In advanced countries like the USA, many people face huge debts due to credit card usage. “In the US, people often pray for debt cancellation,” Abbey noted. “A credit score system exists, but it doesn’t guarantee comfort.”
Despite the potential benefits, Abbey warned against overselling the credit system as a solution. “It’s not about making life comfortable but being able to service your debt,” he added.
Meanwhile, New Patriotic Party (NPP) flagbearer Dr. Mahamudu Bawumia has criticized the opposition National Democratic Congress (NDC) for their skepticism about his proposed national credit scoring system. He plans to introduce a system allowing Ghanaians to buy goods on credit and pay in instalments.
Dr. Bawumia defended his proposal, stating it would modernize Ghana’s economy. “In developed countries, people buy goods on credit and pay in instalments,” he said. “Ghana has reached a stage where we need this system.”
He argued that the system would ease financial burdens on Ghanaians. “People shouldn’t have to pay for everything upfront,” he said. “A credit scoring system will let workers buy items and pay over time.”
The NDC has ridiculed Bawumia’s proposal, doubting its feasibility. However, Bawumia remains confident in his plan. “When we propose something, they say it’s impossible. But it is possible,” he asserted.
Abbey, however, pointed out that even with such a system, the core issue remains creating a productive economy. “Credit scores won’t help if people aren’t earning,” he reiterated. “We must focus on building a strong economic foundation.”
The debate over the credit score system continues, highlighting differing views on how to address Ghana’s economic challenges. Both sides agree on one thing: the need for substantial economic reforms.
Ghana’s path to economic stability requires more than just a credit scoring system. It demands a holistic approach that includes job creation, increased productivity, and financial education. Only then can Ghanaians fully benefit from such financial tools.
The discussion around credit scores in Ghana serves as a reminder of the complexities involved in economic development. While financial systems can aid growth, they are not standalone solutions. The focus should be on creating an environment where such systems can thrive.
Abbey’s warning underscores the need for a balanced approach to economic reform. Credit scores can play a role, but they are not the cure-all for Ghana’s economic issues. A productive and financially literate society is essential for sustainable growth.
Source: Ghana Web
