Societe Generale Ghana Deputy MD Calls for Expansion of Non-Interest Banking Framework to Deepen Financial Inclusion
Deputy Managing Director of Société Générale Ghana, Kwame Abbey, has underscored the immense potential of non-interest banking and finance in driving ethical financial practices, expanding access to credit, and promoting inclusive economic growth in Ghana.
Speaking during a webinar themed “Non-Interest Banking and Finance: A Pathway to Ethical Banking and Inclusive Growth” on Tuesday, November 4, 2025, Mr Abbey noted that non-interest banking represents a viable alternative for segments of the population that remain unbanked due to ethical or religious reservations against conventional banking systems.
“We have a significant number of people who are still unbanked, including some of our Muslim brothers and others who are ethically against conventional banking. There remains a big market for these customers, and banks must be prepared to offer ethical or non-interest savings and finance products to serve them,” he stated.
Two Licensing Regimes for Non-Interest Banking
Mr Abbey explained that Ghana’s financial regulatory framework provides for two categories of non-interest banking licences: one for existing conventional banks that wish to offer non-interest banking products through a dedicated “window,” and another for fully-fledged non-interest banks whose operations are entirely interest-free.
He noted that guidelines developed for the sector ensure neutrality and inclusiveness, with restrictions against names or symbols that may affiliate such institutions with specific religions.
“We are deploying this in a secular economy. Fully-fledged non-interest banks are not expected to have names or identities linked to any religion, not only Islam. These guidelines are meant to ensure sanity and progress in the development of non-interest banking,” he added.
Opportunities for Inclusive Growth
Mr Abbey outlined six key opportunity areas that the non-interest banking model could support — including retail banking and financial inclusion, SME financing, infrastructure and capital markets, ethical and sustainable finance, fintech integration, and capacity building.
He highlighted that SMEs, which often struggle to meet collateral requirements for traditional credit, could benefit from profit-sharing and joint venture models under the non-interest framework.
“The growth of SMEs in our country has been very poor due to limited access to finance. Non-interest products such as joint ventures and profit-sharing arrangements can be used to develop the SME sector,” he observed.
On infrastructure financing, Mr Abbey pointed to the Sukuk — Islamic bonds — as an innovative tool for government and private sector entities to raise funds for projects in transportation, housing, healthcare, and renewable energy.
“Sukuk can be raised from Gulf States or other Islamic markets to support national development. Banks must position themselves to develop in-house Sukuk expertise and partnerships with Islamic capital market players,” he said.
Aligning with ESG and Digital Finance Trends
The Deputy MD further linked non-interest banking to ethical and sustainable finance principles, noting its alignment with Environmental, Social and Governance (ESG) frameworks through its prohibition of speculative activities and emphasis on real asset-backed financing.
He also highlighted the importance of digital integration, urging Ghanaian banks to leverage fintech and mobile money ecosystems to establish Islamic-compliant fintech solutions and digital wallets.
“Banks can leverage Ghana’s fintech ecosystem to develop Islamic fintech and mobile-compliant wallets. This will enhance financial inclusion and make non-interest banking more accessible,” he emphasized.
Building Capacity and Expertise
Mr Abbey concluded by calling for targeted investments in education, professional certification, and advisory services in Islamic finance to build local capacity.
“We currently lack qualified Islamic finance professionals. The Chartered Institute of Bankers and tertiary institutions, together with the Bank of Ghana, can help develop expertise in this space. The demand exists for certification and advisory services,” he noted.
He maintained that non-interest banking and finance, if fully embraced, can significantly transform Ghana’s financial landscape by promoting ethical practices, widening access to credit, and stimulating inclusive economic growth.
