In the name of God, the compassionate, the merciful
Dr. Palgrave Boakye-Danquah, a former government spokesperson on security and governance, recently argued on www.ghanawed.com against the introduction of Islamic banking in Ghana, framing it as a defence of the country’s secular constitution, which is misguided and fails to recognize the distinction between religious imposition and financial inclusivity. Islamic banking is not an attempt to Islamize Ghana’s economy but rather a proven alternative financial system that aligns with Ghana’s secular principles while expanding economic opportunities for all citizens, regardless of faith.
1. Islamic Banking is a Financial Model, Not a Religious Mandate
Islamic banking operates on ethical principles, including profit-sharing (Mudarabah), asset-backed financing (Murabaha), and the prohibition of interest (Riba). These principles are not exclusive to Islam—they resonate with broader ethical banking practices advocated by many faiths and even secular ethical investors. Countries like the UK, South Africa, and Kenya (with Christian-majority populations) have successfully integrated Islamic banking without compromising their secular identities. The Bank of Ghana’s move is an economic decision, not a religious one.
2. Secularism Ensures Equal Opportunity, Not Exclusion
Ghana’s constitution guarantees secularism, meaning the state does not favour any religion. However, secularism also mandates that no religious group should be excluded from participating in the economy. By introducing Islamic banking, Ghana is simply expanding financial access to Muslims and others who prefer interest-free banking, not establishing a state religion. This is no different from allowing Christian-owned banks or ethical investment products tailored to specific beliefs.
3. Economic Benefits Outweigh Baseless Fears
Islamic banking has been shown to boost financial inclusion: Over 16% of Ghana’s population is Muslim, many of whom avoid conventional banking due to religious prohibitions on interest. This system unlocks their economic potential.
Attract foreign investment: Gulf and other Islamic finance markets are a major source of capital. Ghana stands to benefit from partnerships with institutions in the Middle East and Asia.
Promote risk-sharing stability: Unlike conventional loans, Islamic finance ties returns to real economic activity, reducing speculative risks.
4. Precedent Exists in Secular States
Nigeria, Uganda, and even Western nations like the UK and Germany have Islamic banking without compromising secularism. The Bank of Ghana is not breaking new ground; it is aligning with global best practices to diversify the financial sector.
Conclusion: A Win for Ghana’s Economy
Rather than viewing Islamic banking as a threat, Ghanaians should embrace it as a tool for inclusive growth. The Bank of Ghana’s initiative respects secularism by offering choice, not imposing doctrine. Critics should focus on how this system can create jobs, attract investment, and integrate underserved communities into the formal economy, instead of stoking unfounded fears.
Ghana’s secularism is strong enough to accommodate diverse financial systems, just as it accommodates diverse religions. And Allah knows best!
YAHAYA ILIASU MUSTAPHA
The writer is the Ghana representative of the Alhuda Centre of Islamic Banking and Economics, Dubai, and an 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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