Ghana: Bank of Ghana set to begin licensing non-interest banks – Governor Asiama

The Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama, has announced that the central bank is preparing to issue licences for non-interest (Islamic) banking, as investor interest in the segment continues to grow.

Speaking at the 128th Monetary Policy Committee (MPC) press briefing in Accra on Wednesday, Dr Asiama said the BoG is now ready to receive, review and approve applications from financial institutions that meet the required standards, although no specific timeline was provided. The briefing followed the MPC’s decision to cut the policy rate by 250 basis points to 15.5 per cent from 18 per cent.

According to the Governor, several potential investors have already engaged the central bank and are conducting preliminary assessments ahead of submitting formal applications.

“A number of potential investors are writing to us and doing the necessary checks. We are therefore optimistic that very soon, we will receive formal licence applications that we can review and advance,” Asiama said.

He noted that progress has been made since the announcement of plans to operationalise non-interest banking in 2025, including extensive stakeholder consultations and the publication of operational guidelines to govern the sector.

Non-interest banking operates on principles that prohibit interest-based transactions, excessive uncertainty, gambling, speculative activities, and the financing of prohibited ventures. Instead, it relies on profit- and loss-sharing arrangements and asset-backed financing.

The BoG views the introduction of non-interest banking as a strategic tool to support economic growth, deepen financial inclusion, promote sustainable development, and create employment, in line with its mandates of price and financial stability.

In November 2025, the Governor’s advisor on non-interest banking, Professor John Gartchie Gatsi, said the central bank had completed all structural and regulatory preparations required to launch the sector. He has consistently emphasised the importance of non-interest banking as an alternative financing model, particularly for small and medium-sized enterprises (SMEs).

Professor Gatsi also dismissed the perception that non-interest banking is designed to promote religion, describing it instead as a globally accepted banking model that provides alternative sources of funding without interest burdens.

“Non-interest banking exists in countries like the US, UK and Malaysia as part of their financial systems. It is an alternative model that can complement conventional banking and help support areas of the economy that remain underserved,” he said.

Although Ghana’s Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) provides for non-interest banking, a comprehensive framework to guide its implementation was only finalised in 2025, paving the way for the sector’s formal rollout.