Ghana is taking decisive steps to activate a long-delayed pillar of its financial sector, as the Bank of Ghana begins the process of operationalising Non-Interest Banking and Finance (NIBF) almost 10 years after it was first permitted by law.
The renewed push, announced in a speech delivered on behalf of Governor Dr. Johnson Pandit Asiama, signals a major shift aimed at expanding financing options for businesses and strengthening productivity in the real economy.
Speaking at a training workshop in Accra, Mr. Ismail Adam, Director of the Banking Supervision Department underscored the urgency of the move. After years of regulatory silence, he said the central bank is now firmly in implementation mode. “Since 2016, when non-interest financial services were made permissible activities in Act 930, this is the first time we have invested in regulatory efforts to operationalise it,” the Governor’s statement noted.
Globally, non-interest finance has gained traction for its emphasis on asset-backed, risk-sharing contracts. In Ghana, it is widely seen as a potential game changer for small and medium enterprises, manufacturers, and agribusinesses, sectors that often struggle under conventional interest-based financing. The Governor reinforced this point, stating: “Non-Interest Banking and Finance… promises to broaden the availability of financing products to support the real sector.”
With high lending rates continuing to constrain private sector growth, businesses have been calling for alternative financing models that reduce risk and create space for long-term capital investment. Mr. Adam stressed that readiness is key, warning that the ecosystem cannot sustain this transition without the right technical and human capacity. “It is critical to develop capacity for the emerging new model of banking and financing in Ghana,” the Governor’s remarks emphasized.
This capacity-building effort will involve training industry professionals in specialised contracts such as Murabaha, Mudarabah, Musharakah, and Ijara, while also redesigning banking systems to accommodate the unique accounting and compliance structures associated with non-interest finance.
Without a strategic push to build expertise, technology systems, and governance frameworks, Ghana’s rollout may face early challenges. Yet the central bank’s new posture signals a strong commitment to drive the process forward.
The message from the Bank of Ghana is clear: the country can no longer delay a framework that has the potential to diversify its financial sector and widen access to finance. As Ghana’s economy continues to evolve, the operationalisation of non-interest banking could mark the beginning of a new era, one built on inclusion, shared risk, and broader participation.
