- Ghana negotiating to make credit for car loans available through digital ID card
In Ghana, showing one’s biometric national ID (Ghana Card) to a car vendor may soon become the norm for securing a car on hire buy.
Negotiations in this regard are currently continuing between state authorities and some automotive businesses, according to Dr. Mahamudu Bawumia, the country’s Vice President, as reported by Modern Ghana.
The Vice President stated during an event at Kwame Nkrumah University of Science and Technology (KNUST) that the negotiation is part of broader efforts to establish a credit system for Ghanaians based on the Ghana Card.
According to Bawumia, if everything is in place, the ID card would “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.”
“All they will need at the point of transaction will be your Ghana Card and they will give you a car and then you pay over time,” he was reported as saying.
Solar Taxi, a ride-hailing business that also offers Xpeng electric automobiles, will pilot the system.
As part of the strategy, the government claims it is developing a credit score system that will evaluate the credit behaviour and history of persons applying for such loan schemes.
The Ghana Card is the primary form of identification issued to Ghanaians and foreign nationals. It is essential for practically every public and private sector transaction, including applying for a passport, financial and business operations, enrolling a SIM card, and seeking work.
The NIA is planning its next enrollment effort.
Over the years, the National Identification Authority (NIA) has worked to expand the Ghana Card’s coverage.
The ID-issuing authority launched a follow-up nationwide enrollment push for the biometric ID in September, primarily targeting persons who had never received the card.
According to an article published by Graphic Online, the NIA plans to launch a special Ghana Card registration process in 2024, targeting around three million Ghanaians residing overseas.
The report echoes the sentiments of some potential recipients, who detailed their previous difficulty in obtaining the Ghana Card, as well as their relief now that the government planned to meet with them and grant them the credential in their different countries of residency.
According to NIA estimates, 17.5 million Ghanaians out of a population of 30.8 million had been issued a Ghana Card as of October 31. As of the same day, 895,000 of the cards had yet to be withdrawn by their owners.
Next year, the NIA intends to register 7 million youths under the age of 15.
The Ghana Election Commission has also been pushing ahead with a plan to make the Ghana Card the primary form of identification required for voter registration.
