Ghana’s journey towards establishing an alternative finance ecosystem, particularly in interest-free banking, has spanned several decades. The evolution of this system has been fueled by the efforts of various interest groups, which have led to the formation of clear policy frameworks.
A significant milestone in this development occurred on December 9, 2024, when the Bank of Ghana (BoG) published a draft set of guidelines aimed at regulating and supervising non-interest banking activities across banks, specialized deposit-taking institutions, and development financial bodies.
This date marks a culmination of persistent advocacy from the Islamic Finance Research Institute of Ghana (IFRIG), along with backing from a mix of public, private, and international partners, to promote the concept of non-interest banking.
IFRIG Year-End Webinar on BoG Guidelines
Recently, IFRIG hosted its final webinar of 2025, inviting Nigerian officials to discuss the central bank’s draft document as the institute compiles public feedback to submit by the December 24 deadline.
The four Nigerian experts present praised the guidelines, noting that the BoG had effectively addressed most foundational elements crucial to the industry.
These experts included Mr. Umahani Ahmad Amin (Managing Partner of Metropolitan Law Firm), Professor Usman Muhammad Shuaib (Head of Islamic Banking and Finance at Bayero University, Kano), Mr. Ismaila M. Zakari, and Ambassador Shuaib Adamu Ahmed (Co-Founder of Ahmed Zakari Ltd.).
They Identified Three Main Advantages of the Guidelines:
- Inclusiveness: The document details how existing banks can set up NIB operations and how new banks can enter this space, addressing partnerships between fintechs and NIB institutions.
- Corporate Governance Depth: It mandates the creation of a Non-Interest Banking Advisory Committee (NIBAC) and a Non-Interest Financial Advisory Committee (NIFAC) at BoG, which can uphold key principles of interest-free banking if executed well.
- Alignment with International Standards: The experts observed that the guidelines support the use of international accounting standards like IFSB and AAOIFI.
“Ghana is really enhancing the scope of Islamic finance within the African region. It’s encouraging, though we see room for tweaks as we start operations,” Professor Shuaib noted during the discussion.
Ambassador Shuaib added, “I’m very impressed with the draft proposal from the Bank of Ghana. Their push for interest-free banking is commendable.”
Ismaila Mohamed Zakari pointed out that developing a strong regulatory framework from such a draft is critical, suggesting clarity is needed in areas like capital requirements and fintech regulations.
Ummahani emphasized the 3Cs going forward: clarity, certainty, and capacity. He mentioned that clear legal language regarding contracts and dispute resolution is necessary to foster investor and customer confidence.
The four IFRIG contributors to the webinar included: Dr. Shuaib Ali (Director General), Jeffrey Yousif (Director of Finance), Moussa Ismaila (Director of Audit and Governance), and Sherif Shaban (Director of Training).
Busy 2025 for Non-Interest Banking and Finance (NIBF)
This year, non-interest banking has become a focal point, highlighted in the government’s 2024 manifesto. Since assuming office, President John Mahama has pushed to ensure these commitments are met.
During a National Prayer and Thanksgiving event at the National Mosque on January 10, 2025, President Mahama stated, “We are committed to rolling out Islamic financial products in Ghana, and we will engage with the Bank of Ghana on this matter.”
Following this commitment, the BoG appointed Professor John Gatsi as an advisor to the NIB. The bank has conducted separate discussions with religious leaders and organized a capacity-building workshop for key stakeholders ahead of the guidelines’ release.
