Ghana at the threshold of a new financial era: What non-interest banking could mean for the economy

Ghana is on the cusp of a transformative period for its financial system as it prepares to embrace non-interest banking, a concept that could redefine the nation's economic landscape. This shift marks a significant departure from the traditional interest-based banking model that has dominated Ghana's financial intermediation and credit creation processes for decades.

By embracing non-interest banking, Ghana is not merely introducing a new product; it is positioning itself at the forefront of a burgeoning global financial industry that plays a pivotal role in capital markets, insurance, investment management, and infrastructure financing.

The global Islamic financial services industry, as exemplified by the Islamic Financial Services Board (IFSB), has witnessed remarkable growth, reaching a total asset value of US$4.4 trillion in 2025. This illustrates that what was once considered a specialized niche has evolved into an integral part of mainstream finance. The IFSB's report highlights that non-interest finance is no longer confined to parallel offerings but has become a mainstream component of domestic financial systems and national economic agendas in several countries.

Ghana's transition to non-interest banking aligns with this global trend, signaling a broader shift towards more inclusive and sustainable financial practices.

Ghana's recent non-interest banking performance has been robust, with a year-on-year growth rate of 9.7 percent in 2025, reflecting a positive trajectory. This growth is mirrored across various segments of non-interest finance, including non-interest bonds (Sukuk), which expanded by 21.8 percent, and non-interest (Islamic) funds, which grew by 25.6 percent in 2025. These figures underscore the industry's diversification and its potential to drive economic development beyond traditional banking channels.

The global expansion of non-interest finance is not limited to banking alone; it has penetrated capital markets, insurance, and investment funds, each contributing significantly to the industry's growth. In 2025, global Islamic financial services industry assets surged by US$1.7 trillion, marking a 13.4% year-on-year increase. Over the past five years, the industry has shown a strong annual growth rate of 13.4 percent, with a compound annual growth rate of 10.3 percent from 2020 to 2025.

This growth is characterized by a shift from established markets, such as the Gulf Cooperation Council and East Asia-Pacific regions, to emerging and frontier markets, including Sub-Saharan Africa, where Ghana can capitalize on its growing potential.

The structural evolution of non-interest banking is evident in the increasing integration of non-interest bonds (Sukuk) and interbank financing into broader financial markets. This integration is further highlighted by the rise in interbank funding and Sukuk issuance, indicating a deeper interaction between non-interest banks and capital markets.

Despite the dominance of Murabahah and commodity Murabahah as key financing contracts, the industry is expanding to include a wider array of instruments tailored to support investment, trade, infrastructure, and capital-market activities. This diversification is crucial for Ghana as it seeks to integrate into the global financial ecosystem, offering innovative solutions that can spur economic growth and financial inclusion.

Ghana's entry into non-interest banking presents a unique opportunity to leverage its burgeoning financial infrastructure and regulatory framework. With 16 domestic systemic importance markets accounting for approximately 93 percent of global Islamic banking assets, there is ample room for emerging markets to carve out their niche.

The geographic concentration of assets in established markets underscores the untapped potential in regions like Sub-Saharan Africa, where Ghana can emerge as a key player. By investing in market infrastructure, institutional capacity, and consumer awareness, Ghana can position itself to benefit from the rapid growth of the global non-interest finance industry, thereby fostering a new era of financial innovation and economic transformation.