Audio By Carbonatix
For many years, conventional banking has been the dominant model through which individuals and businesses access financial services.
However, the evolution of the global financial system has demonstrated that interest-based banking is not the only way to mobilise savings, finance businesses, support investment, and promote economic development.
Around the world, countries are increasingly embracing alternative financial models, including ethical finance, sustainable finance, and non-interest banking and finance.
It is therefore important to support the position of the Bank of Ghana, under the leadership of Dr. Johnson Pandit Asiamah, that non-interest banking is not exclusively for Muslims. IFRIG, as a research institute in non-interest banking and finance, strongly supports this position.
Non-interest banking is an inclusive financial system that can be accessed by everyone, regardless of religion, ethnicity, or personal belief.
Non-interest banking should be understood as an alternative and complement to the conventional banking system, rather than a replacement for it. Just as customers have different financial needs and preferences, Ghana's financial system should provide different products and models that enable individuals and businesses to choose the financial services most suitable for their circumstances.
Unlike conventional banks, which primarily lend money and generate income through interest, non-interest banks provide financing through commercial contracts and activities linked to the real economy. Their revenues are generated through asset-based financing, leasing-based financing, trade and investment activities, as well as equity-based partnerships.
Products such as cost-plus financing, leasing, Joint venture, profit-sharing partnerships provide alternative structures through which businesses and individuals can access financing.
For example, a bank may purchase an asset and sell it to a customer at an agreed profit, lease an asset to a customer, or enter into a partnership or investment arrangement. The financing is therefore linked to an identifiable asset, trade activity, lease, or business venture.
The most important point for Ghanaians, particularly those outside the Muslim community, is that non-interest banking does not require a customer to be a Muslim. A Christian entrepreneur, farmer, trader, professional or investor can access non-interest banking products in the same way as any other eligible customer.
The decision to use such products should be based on their commercial benefits, suitability, and value to the customer, not religious affiliation.
International experience supports this position. The United Kingdom, despite having a Muslim minority population, has developed a significant non-interest finance market, and non-interest banking products are openly available to customers of all faiths and none.
The Bank of England has clearly explained that non-interest finance is not restricted to Muslims. Nigeria, another diverse and multi-religious society, also provides an important African example of how non-interest banking can operate alongside the conventional banking system and serve customers with different backgrounds.

The introduction of non-interest finance also presents important opportunities for Ghana's investment and capital markets. Of particular importance is the development of Sukuk, commonly referred to as non-interest bonds.
With appropriate regulation and structuring, Sukuk can provide an additional source of financing for major developmental and infrastructure projects, including roads, hospitals, schools, housing, energy, and other public infrastructure.
At a time when Ghana requires innovative and sustainable sources of investment, the introduction of Sukuk and other non-interest financial instruments can potentially attract a wider pool of domestic and international investors. The global non-interest financial services industry, which has grown into a multi-trillion-dollar market, presents an opportunity that Ghana's financial sector should carefully consider.
The development of non-interest banking will also create opportunities for banks, investment firms, accountants, auditors, lawyers, fintech companies, and capital-market professionals. It will introduce new products, contracts, and investment structures and contribute to the diversification and deepening of Ghana's financial system.
IFRIG therefore believes that the discussion surrounding non-interest banking must move beyond religion. The fundamental question should not be whether the system belongs to Muslims or Christians but whether it can provide additional financial choices, encourage investment, deepen the capital market, and contribute to Ghana's economic development.
The Bank of Ghana's responsibility is to promote a sound, stable, inclusive, and innovative financial system. Providing a regulatory framework for non-interest banking does not replace conventional banking or impose any financial product on Ghanaians. Rather, it gives consumers, businesses, and investors an additional regulated option.
Ghana has an opportunity to develop a financial system where conventional and non-interest institutions coexist and complement each other. A more diversified financial system can provide greater choice, promote innovation and open new doors for investment and national development.
Non-interest finance is not for Muslims alone. It is a financial alternative for every Ghanaian who chooses to use it.
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