Ghanaians who seek loans from financial institutions, particularly banks, to set up and grow their respective businesses will have the opportunity to obtain them at a lower cost.

This is according to the Spokesperson for Vice President Dr. Mahamudu Bawumia, Dr. Gideon Boako who says the digitization agenda being rolled out by the Akufo-Addo-led government will among other things reduce the cost of credit in the country.

Addressing the press on Friday, Dr. Boako noted that due to challenges of identity and traceability, banks currently end up giving out loans with higher risk premiums.

However, President Akufo-Addo's vision of building a modern Ghanaian economy anchored on digital technology, has also led to government addressing various challenges through the introduction of the National Identification Card and the digital property address system.

“We have had years of life in Ghana where the identity and traceability of people have remained problematic. This has imposed huge risk on borrowers, hence the higher risk premium placed when people seek bank loans.

“Once the integration of the national I.D and the banking databases is ready, banks will have trust and confidence in a borrower’s identity and traceability. This will obviously bring down the cost of credit,” he said.

In connection with the growth of the economy through digitization, Dr. Gideon Boako further mentioned that more job opportunities will be created for the youth as well as the appreciation of the Ghana cedis.

He explained that the country’s tax base will be broadened, ensuring that government generates enough revenue to reduce the rate of borrowing. Thus allowing the cedi to appreciate.

With regards to job creation, he said: “There are many people today, who have turned their home kitchens into restaurants, yet no one visits them physically to eat. They advertise using digital technology, receive orders using digital technology, receive payments using digital technology and move their incomes to bank accounts using digital technology. This is how digitization is creating jobs.”

For Dr Boako, all should rally behind the government in its quest to digitalize the economy since this will create a “modern Ghanaian economy that can compete favourably globally and conform to the dictates of the fourth industrial revolution.”