Ghana must explore non-interest bonds, known as Sukuk, to finance critical infrastructure projects. Dr. Shaibu Ali, Director General of the Islamic Finance Research Institute of Ghana (IFRIG Ghana), stated this. This alternative financing could fund hospitals, roads, and schools.
Dr. Ali believes Sukuk can help Ghana raise capital from both local and international investors. This comes as the government faces growing financing needs. It also has limited options for traditional borrowing. The introduction of non-interest banking offers a chance to build a wider non-interest financial system.
This proposal fits into Ghana's ongoing challenge of funding major infrastructure. The country seeks to reduce its dependence on conventional loans. Globally, the non-interest financial services industry is expanding rapidly. It is projected to reach approximately US$4.4 trillion in assets by 2025, according to the Islamic Financial Services Board (IFSB).
“Non-interest bonds (Sukuk) should not be seen simply as an Islamic financial product,” Dr. Ali explained. He added, “It is a capital-market instrument that can help mobilise long-term capital for productive national assets.” This perspective emphasizes the financial utility over religious association.
Ghana can tap into this expanding market by establishing the right regulatory framework. It also needs professional expertise and an attractive investment environment. This strategic move could unlock significant long-term capital for national development.
Major infrastructure projects, such as the Agenda 111 hospitals, could attract Sukuk financing. Dr. Ali suggested these projects could be structured to appeal to non-interest investors. He noted, “These are national assets with long-term economic and social value.” This approach ensures sustainable funding for vital public services.
The same financing model could apply to large road projects. Dr. Ali cited the proposed Accra–Kumasi Expressway as an example. He called it a “transformational project” that requires new financing ideas. Education infrastructure, including new schools, also presents an investment opportunity for institutional investors.
Dr. Ali stressed that Sukuk is not exclusive to Muslim investors. He explained that investors from any background can participate. They consider the asset quality, risk, potential returns, and transaction credibility. This broad appeal makes Sukuk a versatile financing tool for Ghana.
Ghana has projects needing funds and investors seeking long-term opportunities. Dr. Ali sees Sukuk as a bridge between these two. He believes pension funds, insurance companies, and international investors could all participate. This connects Ghana’s development needs with global capital pools.
However, Sukuk is not a quick fix or free money. Investors demand credible projects, sound financial structures, and transparency. They also expect effective risk management and competitive returns. Ghana must build regulatory and professional capacity to ensure all transactions are credible.
Strong regulation, professional expertise, and investor confidence are crucial for Ghana’s non-interest finance industry. Policymakers should look beyond just non-interest banking. They should develop a broader financial ecosystem. This includes Sukuk, investment funds, and non-interest insurance, known as Takaful.
The opportunity extends beyond banking. If Ghana establishes the correct framework, it can become a credible non-interest finance hub. This positioning would serve both the domestic market and the wider West African region. It represents a significant economic development pathway for the nation.