Ghana is moving closer to offering interest-free banking. At least one local bank has officially applied for a licence. Four more banks are getting ready to submit their applications to the Bank of Ghana. This shows strong local interest in this type of finance.
Non-interest banking follows Sharia-compliant finance rules. It does not allow interest on loans. Instead, it uses profit-sharing and deals backed by real assets. The Bank of Ghana released rules for this in January 2026. Governor Dr Johnson Asiama confirmed regulators are ready to review applications. He mentioned that several investors had inquired before formally applying.
This development fits into Ghana's economic story. Non-interest banking can help those who struggle with high loan costs. Small and medium-sized businesses (SMEs) often face this problem. The Ghana Association of Banks suggests this model can diversify finance. It could attract foreign money and help fund big projects.
Global Islamic finance is a large market. Its assets were valued at $4.5 trillion in 2024. Projections show it reaching $6.67 trillion by 2027. African nations like Nigeria, Egypt, and South Africa have raised billions through sukuk bonds recently. Sukuk bonds are Islamic financial instruments. They are based on assets, not just debt.
Dr Daniel Anim-Prempeh, Chief Economist at the Public Initiative for Economic Development (PIED), sees this as positive. He told the Ghana News Agency (GNA) that it shows growing trust in these products. "The module is progressive," he stated. He believes it will help critical sectors like SMEs. "It's going to support critical sectors of the economy, principally, SMEs in terms of expanding their productive capacity, creating jobs for citizens and contribute to the Gross Domestic Product (GDP) growth," he explained.
This banking model can attract customers wary of interest. Dr Anim-Prempeh noted it relies on trust. Banks must work with funds to create opportunities. "Non-interest banking is based on trust – you’re giving the money and expected to work with it, create opportunities, employ people and support the overall growth of the economy and pay back the principal for onward lending to other businesses," he said.
However, strong risk management is crucial. Banks need excellent credit assessment. They also require robust governance and monitoring systems. Dr Issahaku Yakubu, a commercial banking executive, highlighted other benefits. Non-interest finance could fund government infrastructure projects. This could be done through sukuk instruments. "Through instruments such as Sukuk (Islamic bonds), Ghana can fund significant infrastructure projects like road construction, railway expansion, the revival of the Tema Oil Refinery (TOR), the reintroduction of state-owned airlines, and housing initiatives without increasing national debt," he said.
Many Ghanaians remain unbanked. Over 42 percent lack access to formal banking. Non-interest products might change this. They align with religious and ethical choices. Ghana's framework aims to be open to all faiths. This follows successful models in the US, UK, and Malaysia.