The Bank of Ghana (BoG) is preparing to issue licences to financial institutions seeking to operate non-interest (Islamic) banking in the country, Governor Dr Johnson Pandit Asiama has announced.

Although no specific timeline was provided, Dr Asiama said the central bank is ready to receive, review and approve applications from institutions that meet the required regulatory standards, noting increasing interest from potential investors.

He made the disclosure at the 128th Monetary Policy Committee (MPC) press briefing in Accra on Wednesday, during which the BoG announced a 250-basis-point cut in the policy rate, reducing it from 18 per cent to 15.5 per cent.

“A number of potential investors are writing to us and doing the necessary checks. We are therefore optimistic that very soon, we may be able to receive a formal licence application that we can assess and move the process forward,” Dr Asiama said.

The Governor explained that significant progress has been made since the announcement of the operationalisation of non-interest banking last year. This, he noted, has included extensive stakeholder consultations and the publication of guidelines to regulate conduct within the sector.

Non-interest banking refers to financial services conducted in line with principles that prohibit interest, excessive uncertainty, gambling or speculative transactions, as well as the financing of prohibited activities. Instead, transactions are structured around profit-and-loss sharing and asset-backed financing.

According to the BoG, the introduction of non-interest banking is aimed at supporting economic growth, deepening financial inclusion, promoting sustainable development and creating employment, in line with the Bank’s mandate to ensure price stability, financial stability and economic development.

In November 2025, the Governor’s Advisor on non-interest banking, Professor John Gartchie Gatsi, stated that the central bank was fully prepared to roll out the sector following the completion of all required structural arrangements and operational guidelines.

Professor Gatsi has since reiterated the importance of non-interest banking to Ghana’s financial system, calling for wider adoption. He explained that while the model is rooted in Islamic principles, it is not intended to promote religion but rather to provide alternative financing options for economic development.

He noted that non-interest banking offers a framework where lending and borrowing occur without interest, with returns shared through profit-and-loss agreements, making it particularly beneficial for Small and Medium-sized Enterprises (SMEs) by reducing the burden of interest payments.

Citing examples from the United States, the United Kingdom and Malaysia, Professor Gatsi stressed that non-interest banking is already integrated into the financial systems of many secular economies.

“This is not about religion. It is an alternative form of banking that exists in most advanced economies, and that is what we should aspire to have—to complement our existing system and support areas that traditional banking may not adequately serve,” he said.

Although the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) makes provision for non-interest banking, a comprehensive framework to guide operations in the sector was only finalised in 2025, paving the way for its implementation amid growing investor interest.