Islamic finance aligns with the cultural and traditional values of Ghana

In the name of God, the compassionate the merciful

Ghana’s cultural and traditional values are not inherently in conflict with Islamic finance; in fact, many aspects of Ghanaian culture including the ‘edinkra’ (aphorism) symbols align with the ethical and social principles that underpin Islamic finance. Islamic finance is grounded in Shariah law, which promotes fairness, transparency, and social justice, all of which resonate with the moral values that Ghanaian society holds dear. Here’s how Ghana’s cultural and traditional values can complement and support the implementation of Islamic finance:

  1. Communal Support and Social Justice

The Ghanaian value of unity and the importance of community can be seen as a natural fit with the Islamic finance principle of social welfare and financial inclusion. Islamic finance promotes wealth redistribution through mechanisms like zakat (obligatory charity), sadaqah (voluntary charity), and waqf (endowments). These practices mirror the communal spirit of Ghana, where helping those in need and contributing to the welfare of the nation.

  1. Charity and Generosity

Generosity and charity are essential values in Ghanaian society, where individuals are expected to support their families, neighbours, and community members. Similarly, zakat (the almsgiving pillar of Islam) encourages wealthier individuals to share their resources with those less fortunate. Both Ghanaian culture and Islamic finance place a strong emphasis on helping the disadvantaged and promoting social equity.

  1. Respect for Ethical Behavior

Ghanaian culture places a high value on honesty, integrity, and ethical behavior in all dealings, which are also fundamental principles of Islamic finance. Islamic finance prohibits riba (interest), gharar (excessive uncertainty), and maysir (gambling), encouraging instead profit-sharing, risk-sharing, and ethical investments. The emphasis on honesty in Ghanaian society would support these ethical guidelines, fostering trust in Islamic financial transactions.

4. Humility and accountability

Ghanaian culture values humility and accountability, urging individuals to remain modest and to take responsibility for their actions. Islamic finance also upholds these values, as financial transactions must be fair, transparent, and conducted with integrity. Mudarabah (profit-sharing) and musharakah (joint venture) partnerships in Islamic finance ensure that risk and reward are shared fairly, encouraging accountability and fairness in business dealings.

  1. Religious Faith and Spiritual Principles

Both Islam and Christianity, including traditional Ghanaian cultures, have a strong emphasis on spiritual values and ethical conduct in daily life. Islamic finance operates on principles derived from the Quran and the Hadith, which encourage equitable, ethical, and spiritually mindful financial dealings. The strong religious faith in Ghana, both in Christianity and Islam, can foster acceptance of Islamic finance, as people are already accustomed to ethical guidelines in their financial and personal conduct.

  1. Conflict Resolution and Peaceful Collaboration

Ghanaian culture encourages peaceful resolutions to conflicts and values dialogue and mediation. These values can facilitate the implementation of Islamic finance, as Islamic financial systems encourage cooperative models, such as mudarabah and musharakah, where both parties share risks and rewards in a mutually beneficial way. In situations where conflicts arise, the Ghanaian culture of mediation can support the resolution of financial disputes peacefully and fairly.

  1. Sustainability and Ethical Investment

Last but not least, Ghanaian culture often emphasizes sustainable living and respecting the environment, especially in rural areas where agriculture plays a key role in livelihoods. Islamic finance shares a similar focus on sustainable and ethical investment. The prohibition of investing in industries like alcohol, gambling, and tobacco in Islamic finance aligns with the broader ethical stance in Ghana, where people are encouraged to engage in businesses that benefit society and avoid those that harm the environment or public health.

In a nutshell, Ghana’s cultural and traditional values are largely in harmony with the core principles of Islamic finance. Values such as fairness, hard work, honesty, charity, community support, and responsibility are deeply embedded in both Ghanaian society and Islamic finance, providing a solid foundation for the acceptance and growth of Islamic financial systems in the country. As Ghana continues to embrace financial innovations, these shared values could contribute to the smooth integration of Islamic finance into the broader financial landscape, benefiting both individuals and communities while promoting ethical and sustainable economic growth. And Allah knows best!

The writer is the Ghana representative of the Alhuda Centre of Islamic Banking and Economics, Dubai, and Islamic Banking and Finance patron and advocate in Ghana. He is also the founder of ‘Islamic Finance TV Gh’ on Facebook and TikTok. He holds a BSc. in Islamic banking, economics, and finance from the International Open University a BA. in Political Science from the University of Ghana, and a Diploma in Education from the University of Winneba. We would want to collaborate and partner with any persons or organizations who are willing to explore this field in Ghana and beyond.

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