Ghana’s financial regulators are preparing to introduce Sukuk bonds, non-interest-compliant investment instruments, following an intensive five-day training and study tour in Kuala Lumpur, Malaysia. Officials from the Bank of Ghana, the Securities and Exchange Commission (SEC), and the National Insurance Commission participated in the mission. This delegation studied Malaysia’s globally recognized non-interest banking and finance ecosystem.
High Commissioner to Malaysia, Florence B. Akonor, urged Ghana to reduce its over-reliance on Western economic models. She emphasized drawing lessons from Asia’s development success stories. Madam Akonor believes Ghana needs to learn from Malaysia’s discipline, policy consistency, and long-term vision. This approach can help overcome the nation's current economic challenges.
This push to diversify Ghana's economic outlook aligns with ongoing efforts to transform the financial sector. Ghana aims to introduce non-interest banking and Takaful insurance as part of this broader strategy. The country's economic management has often faced challenges maintaining consistent policy direction across different governments. Adopting a stable, long-term roadmap, as seen in Malaysia, could provide much-needed stability. This initiative also reflects a move towards greater financial inclusion and ethical finance practices.
Madam Akonor explicitly stated that Ghana must collaborate more closely with countries like Malaysia. She argued this is not just for technical policies but also for adopting a principled and consistent approach to economic governance. She said, "We need to look at countries like Malaysia and collaborate with them to get out of our current economic crisis." Dr. Ali Shaibu, Executive Director of the Islamic Finance Research Institute of Ghana (IFRIG) and delegation leader, confirmed the trip's purpose. He noted it aimed to study Malaysia’s success in non-interest banking and apply those lessons in Ghana.
The move signifies Ghana’s commitment to exploring alternative financial solutions to stimulate economic growth. Professor John Gatsi, leading the Bank of Ghana team, indicated Ghana needs advisory support and investment capital. This support will deepen non-interest banking and finance. Dr. James Klutse Avedzi, Director-General of the SEC, confirmed a framework is ready for Sukuk bonds. He called on both local and international investors to participate. This development creates new avenues for capital mobilization and investment. It could diversify funding sources for national projects.
Non-interest banking, often known as Islamic finance, operates on principles avoiding interest (riba), speculation (gharar), and unethical investments. It promotes risk-sharing and ethical practices, aligning finance with real economic activities. Professor Dr. Naail Mohammed Kamil, Ghana's Deputy High Commissioner to Malaysia, praised this model. He described it as the best alternative to complement Ghana's existing financial system. He noted it discourages speculation and encourages productive economic activity. This aligns finance with real assets, which is crucial for a developing economy. Malaysia's experience over four decades shows how non-interest financial instruments can mobilize capital effectively.
Alhaji Attahiru Maccido, Executive Director of Trustmark Capital, revealed Ghana plans to issue Sukuk bonds domestically first. This phased strategy aims to build confidence and capacity within the local market before targeting foreign investors. This cautious approach could ensure a stable foundation for the new financial products. Stakeholders will watch closely to see how these new instruments are received by investors. The successful integration of non-interest banking could provide a stable source of funding for infrastructure and other strategic national projects. This transformative approach could strengthen Ghana's financial system and support sustainable economic development.