Ghana Moves Toward Interest-Free Islamic Banking

Ghana Moves Toward Interest-Free Islamic Banking
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Ghana’s central bank has announced plans to introduce Islamic banking and interest-free financial services, marking a significant step toward diversifying the country’s financial sector.

According to The Guardian, Central Bank Governor Johnson Asiama said the initiative is aimed at expanding financial inclusion and creating new economic opportunities for Ghanaians.

He emphasized that once the necessary legal frameworks are completed and Sharia supervisory boards are established, licenses for Islamic banks will be issued.

The governor noted that Islamic finance, which prohibits interest-based transactions, could provide an alternative model for savings, investment, and lending, particularly for communities that avoid conventional banking for religious reasons.

Observers say Ghana’s move aligns with a growing global trend, as countries across Africa and beyond seek to tap into Islamic finance markets, which are estimated to be worth over $2 trillion worldwide.

If implemented successfully, the system could broaden access to finance and strengthen Ghana’s role as a financial hub in West Africa.