Sina Kamagate: Non-Interest Banking and Finance Can Ease Ghana’s FX Pressures Through Sukuk Bonds
The Executive Head of Retail Banking at GCB Bank, Sina Kamagate, has expressed strong optimism about the prospects of non-interest banking in promoting financial inclusion and stabilising Ghana’s foreign exchange market.
Speaking during a webinar organised by the Islamic Finance Research Institute of Ghana (IFRIG) on the theme “Non-Interest Banking and Finance: A Pathway to Ethical Banking and Inclusive Growth” on Tuesday, November 4, 2025, Mr Kamagate said the growing interest in Islamic banking presents an opportunity for the financial sector to expand access to underserved populations and strengthen ethical financial practices.
He disclosed that some GCB Bank customers, guided by religious and ethical principles, often request the reversal of interest credited to their savings accounts – a development he described as proof of the need for an alternative financial model.
“There are customers who, upon realising that interest has been credited to their accounts, actually walk to the bank and request that it be reversed,” he said. “That shows a level of truism and a clear need to create this wing of banking that accommodates everyone in the financial services ecosystem.”
Mr Kamagate observed that non-interest banking, particularly through the introduction of Sukuk (Islamic bonds), could help Ghana address key macroeconomic challenges such as seasonal foreign exchange pressures. He explained that the issuance of Sukuk instruments backed by tangible assets, such as cocoa exports, could provide sustainable funding while maintaining ethical investment principles.
“Every year, between August and October, the country anticipates cocoa syndicated loans to ease foreign exchange pressures,” he noted. “That is an opportunity for Sukuk. If we introduce Islamic banking, such instruments can be backed by commodities like cocoa, ensuring transparency and shared profits between investors and financial intermediaries.”
He added that the Sukuk model aligns with the principles of risk and profit sharing, ensuring that both depositors and banks benefit equitably. This, he said, creates a fairer system of financial intermediation compared to conventional interest-based mechanisms.
Mr Kamagate further referenced comments by Bank of Ghana officials expressing optimism about lowering interest rates below 10 percent – a move he interpreted as aligning with the long-term vision for a non-interest banking regime in Ghana.
“To make such a pronouncement at a time when interest rates were hovering around 28 to 30 percent clearly shows that we are headed towards a non-interest banking and finance regime,” he remarked.
He concluded by stressing that the establishment of a robust non-interest banking framework would mark one of the most transformative developments for Ghana’s financial inclusion and infrastructure financing agenda.
