In the name of God, the compassionate, the merciful
With the growing appetite of Ghanaians for inclusive financial solutions, the time is ripe for the government to embrace Islamic Finance as a catalyst for economic growth. Mr. President, your administration has the opportunity to position Ghana as a leader in Sharia-compliant banking and investment, unlocking new avenues for development, foreign investment, and financial inclusion.
Why Islamic Finance?
Islamic Finance, guided by risk-sharing principles, asset-backed transactions, and prohibition of interest (riba), offers a sustainable and ethical alternative to conventional banking. With over 1.9 billion Muslims globally and a rising demand for ethical financial products, Islamic Finance presents a multi-trillion-dollar industry that Ghana cannot afford to ignore.
Key benefits include:
-Millions of Ghanaians, particularly Muslims and ethical investors, avoid conventional banking due to religious or moral reasons. Islamic Finance bridges this gap. This is what financial inclusion means.
-Gulf nations and Islamic financial hubs are eager to invest in African markets. A strong regulatory framework for Islamic Finance will attract capital from the Middle East and Southeast Asia. This is Foreign Direct Investment for ghana.
-Since Islamic Finance discourages speculative transactions and promotes real asset-backed investments, it reduces financial instability and encourages long-term growth. This is Economic Stability for ghana.
Mr. President, Here’s Your Action Plan
To fully harness the potential of Islamic Finance, your administration should:
1. Strengthen Regulatory Frameworks.
– Amend the Banks and Specialized Deposit-Taking Institutions Act to fully accommodate Islamic banking operations.
– Establish a National Sharia Advisory Board to oversee compliance and standardization.
2. Promote Sukuk for Infrastructure Development;
– Issue sovereign Sukuk to fund roads, hospitals, and energy projects, following the successful examples of Nigeria, Senegal, and South Africa.
– Encourage private-sector Sukuk issuance for corporate financing.
3. Enhance Public Awareness & Education;
– Partner with universities to introduce Islamic Finance courses in business and finance curricula.
– Launch nationwide campaigns to educate Ghanaians on the benefits of Islamic banking, takaful (Islamic insurance), and halal investments.
4. Attract Foreign Islamic Financial Institutions;
– Offer tax incentives to international Islamic banks and investment firms setting up in Ghana.
– Facilitate partnerships between local banks and global Islamic finance giants like Dubai Islamic Bank, Al Baraka, and Kuwait Finance House as well as the Islamic Development Bank.
5. Develop a National Islamic Finance Strategy;
– Set clear targets for Islamic Finance’s contribution to GDP over the next decade.
– Integrate Islamic Finance into Ghana’s 24-hour economic strategy to diversify funding sources.
Mr. President, with the right policies and political will, Ghana can become the hub of Islamic Finance in West Africa, driving financial inclusion, attracting foreign investment, and fostering sustainable economic growth. Now is the time to hit the ground running and make Islamic Finance a cornerstone of Ghana’s financial future. The nation is ready. The investors are waiting. The time is now. Let’s make it happen. And Allah knows best!
YAHAYA ILIASU MUSTAPHA
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, TikTok, and YouTube. 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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