- Non-Interest Banking Could Widen Access to Finance – BoG
Ghana is reviewing three applications for licences to operate in non-interest banking, as the country prepares to introduce a model intended to widen access to finance and attract investment into sectors including agriculture, housing, infrastructure and small businesses.
The applications are under “rigorous review and consideration”, according to remarks by Bank of Ghana Governor Johnson Pandit Asiama at the 5th Non-Interest Finance International Conference in Accra. The remarks, delivered on his behalf by the advisor to the Governor, Prof. John Gatsi, did not identify the applicants or set out a timetable for decisions.
The number of applications provides an early indication of commercial interest in a framework that Ghana has been developing for several years. But the success of the model will depend on more than issuing licences.
Institutions will need to offer products that customers understand, regulators will need to supervise unfamiliar financing structures, and businesses must see clear advantages in using them.
The Governor’s central message was that non-interest banking should not be treated as a service for one religious community. “Non-interest banking is an inclusive banking model that serves customers without discrimination based on religion, ethnicity, culture, or any other social consideration,” he said.
The model is structured so that interest is neither paid nor received. Instead, it relies on financing arrangements linked to assets, trade or shared risks and returns. The distinction is important in a market where the term is often associated narrowly with religion, rather than with a commercial banking system built around different methods of financing.
In Ghana, the regulatory foundation comes from provisions in the Banks and Specialised Deposit-Taking Institutions Act, 2016.
The Governor said the framework was developed after consultations and drew lessons from both religious and secular jurisdictions. It covers prudential regulation, consumer protection, liquidity management, tax treatment and governance.
That regulatory groundwork is essential. A non-interest banking institution still takes deposits, finances customers and manages risks. It must protect customers and maintain financial stability just like any other bank.
Its different contractual structures also mean that supervisors need to understand how assets, profits, losses and liquidity are treated.
The policy case rests partly on the prospect of bringing more savings into the formal financial system. Some households and businesses may avoid conventional banking because of interest-based products, personal preferences or the cost of borrowing.
Non-interest banking could offer an additional route into formal finance, while giving existing customers more choice.
But inclusion depends on whether products reach people and firms that currently struggle to obtain finance. Small and medium-sized enterprises, entrepreneurs and small-scale businesses often face barriers around collateral, repayment terms and the ability to demonstrate reliable cash flow. A new banking model will need to address these obstacles in practice, rather than simply add another category of institution.
The Governor described the model as commercial banking, not a social scheme. That distinction matters for public expectations. Non-interest banks will have to earn returns and manage risks.
They cannot be expected to provide automatically cheaper credit or approve borrowers who do not meet lending requirements. Their contribution will be measured by whether they develop suitable products and mobilise funds for productive activity.
The framework is also intended to connect banking with capital markets and insurance. The central bank has been coordinating with the Securities and Exchange Commission and the National Insurance Commission to expand the range of financial instruments available in Ghana. The remarks highlighted sukuk non-interest bonds and equity-based financing as ways to mobilise long-term capital.
The scale of the international market offers a potential opportunity. The Governor cited global sukuk issuance of about US$291.4 billion in 2025 and projected non-interest finance assets of US$10.5 trillion by 2030, with average annual growth of 9%.
Those global figures show that the sector is substantial, but they do not guarantee that Ghana will attract a comparable share of investment. That will depend on the availability of bankable projects, investor confidence, currency and repayment risks, and the depth of the domestic market.
For Ghana, the proposed use of non-interest instruments in infrastructure, agriculture, housing and renewable energy raises a practical question: which projects could attract financing on terms that are sustainable for both investors and the state?
A sukuk structure can connect investment to assets or defined revenue streams, but it still requires credible project preparation, transparent governance and a clear plan for repayment.
There is also a need to build liquidity-management options. Banks must be able to meet withdrawals and manage short-term funding needs, even where their financing structures differ from conventional interest-bearing instruments.
The Governor said the regulatory framework had been designed to support a broader non-interest bond and insurance market, which could help strengthen the system’s liquidity arrangements.
Public understanding will shape demand. If customers believe non-interest banking is meant only for Muslims, its potential market will be limited. If they assume it automatically offers interest-free borrowing at lower cost, they may be disappointed.
Education will need to explain how the contracts work, how charges are set, what risks customers bear and how disputes are resolved.
Consumer protection will be particularly important as institutions begin to offer new products. Customers should be able to compare costs and obligations with conventional products. Clear disclosure can prevent the label “non-interest” from obscuring fees, profit margins or risks that affect the total cost of finance.
The model also faces a capacity challenge. Banks, lawyers, auditors, regulators and investors will need expertise in structuring and evaluating non-interest products.
Ghana can draw on experience in countries including Kenya, Nigeria and Malaysia, but successful adaptation will require local skills and rules suited to the Ghanaian market.
The Governor’s remarks placed the initiative within a wider aim of deepening the financial sector and attracting international investors. For that ambition to be realised, the sector will need more than a regulatory framework and three applications.
It will need licensed institutions with strong governance, products designed for businesses and households, and projects capable of turning financing into measurable economic activity.
The applications are an early test of whether Ghana’s framework can attract credible operators. Their eventual approval, however, will mark the beginning of a more demanding test: whether non-interest banking can mobilise new funds, reach underserved customers and finance productive investment without compromising consumer protection or financial stability.
The model’s promise is diversification giving Ghana more ways to connect savings with investment. Its credibility will depend on whether that promise becomes visible in access to finance, viable projects and a broader financial system that serves customers across religious and social lines.
