News Guide Africa

Tag: Bank of Ghana

  • BoG’s dynamic CRR is a liquidity management upgrade

    BoG’s dynamic CRR is a liquidity management upgrade

    The decision by the Bank of Ghana as announced last week, to introduce a 20 percent dynamic Cash Reserve Ratio (CRR) framework for commercial banks marks one of the most important refinements to monetary operations in recent years. Although overshadowed by the Monetary Policy Committee’s decision to retain the benchmark policy rate at 14 percent, the new liquidity management tool could ultimately prove even more consequential for the stability and efficiency of Ghana’s banking system.

    At its core, the move reflects a welcome transition from blunt monetary tightening instruments towards more flexible and market-sensitive liquidity regulation.

    Under the previous reserve arrangement, banks were required to maintain fixed reserve balances with the central bank regardless of prevailing liquidity conditions within the financial system. The dynamic CRR system changes this by allowing the central bank to vary reserve requirements in response to liquidity developments, credit growth patterns and macroeconomic conditions. In practical terms, this gives the central bank a more precise mechanism for controlling excess liquidity without excessively distorting credit creation or interest rate transmission.

    This is particularly important at the current stage of Ghana’s economic recovery.

    Since mid-2025, the Bank of Ghana has aggressively reduced the Monetary Policy Rate by a cumulative 1,400 basis points as inflation decelerated sharply and macroeconomic stability improved under the IMF-supported reform programme which ended less than a fortnight ago. Those rate cuts were intended to lower borrowing costs and stimulate private sector activity. However, rapid liquidity accumulation within the banking system has increasingly threatened to weaken monetary discipline and rekindle inflationary pressures.

    The challenge facing the central bank has therefore become more nuanced. It now needs to support growth while simultaneously preventing surplus liquidity from fuelling speculative demand for foreign exchange, destabilising the cedi or encouraging imprudent credit expansion.

    The dynamic CRR framework offers a sophisticated answer to that challenge.

    By requiring banks with stronger deposit growth or larger liquidity surpluses to hold proportionately more reserves, the central bank can sterilise excess liquidity more efficiently. Unlike across-the-board tightening measures, this approach allows policy intervention to be more targeted and responsive to changing market conditions.

    Importantly, the new system should also improve interbank market discipline. Banks will now have greater incentive to manage their liquidity positions prudently rather than relying excessively on short-term funding opportunities or central bank support facilities. This could deepen activity in Ghana’s interbank money market and improve pricing efficiency across short-term instruments.

    There are additional macroeconomic benefits as well.

    A more actively managed liquidity framework strengthens the transmission of monetary policy decisions into the broader economy. One of the longstanding weaknesses of Ghana’s monetary regime has been the disconnect between policy rate adjustments and actual lending behaviour by banks. Excess liquidity has often diluted the impact of policy tightening or easing. By calibrating reserve requirements dynamically, the central bank can better align system liquidity with its monetary policy objectives.

    The move should also support exchange rate stability. In Ghana, surplus cedi liquidity frequently migrates into the foreign exchange market, especially during periods of declining domestic yields. Containing excessive liquidity growth could therefore reduce speculative pressure on the cedi and help sustain the recent exchange rate stability achieved since late 2025.

    Naturally, implementation risks remain. If applied too aggressively, higher reserve requirements could constrain credit to the private sector and weaken economic momentum. Transparency in the calibration process will therefore be essential to avoid market uncertainty or perceptions of regulatory arbitrariness.

    Nevertheless, the broader policy direction deserves commendation. The Bank of Ghana is signalling that monetary management is evolving beyond simple interest rate adjustments towards more flexible and data-driven liquidity control. For a financial system emerging from recent macroeconomic turbulence, that evolution is both timely and necessary

     

  • Banking sector performance improves significantly as total assets expand to GH¢493.9 billion

    Banking sector performance improves significantly as total assets expand to GH¢493.9 billion

    By Adnan Adams Mohammed

    Ghana’s banking industry has demonstrated robust growth and resilience, with the sector’s total assets expanding by an impressive 26.6 percent to reach GH¢493.9 billion.

    The strong balance sheet performance reflects a broader turnaround in the domestic financial landscape, driven by a surge in investments, rising customer deposits, and a steady recovery in credit lines.

    According to data presented by the central bank, all key financial soundness indicators, including liquidity, solvency, efficiency, and profitability, have experienced an upward trajectory. This structural rebound marks a decisive departure from the macroeconomic headwinds that previously constrained domestic lenders following recent debt exchanges and market restructurings.

    Central bank cautiously optimistic over asset inflows

    Detailing the industry’s recovery path at a briefing following the latest regular meeting of the Monetary Policy Committee (MPC), Bank of Ghana Governor Dr. Johnson Pandit Asiama emphasized that the significant asset growth demonstrates renewed corporate and consumer confidence in the regulated banking space.

    “In spite of some lingering challenges, the banking sector’s performance improved significantly,” Dr. Asiama stated. “Total assets expanded strongly, supported by aggressive growth in domestic deposits, strategically managed borrowings, and improved shareholders’ funds. What we are seeing is a banking sector that is liquid, solvent, and inherently stable.”

    The Governor explained that the massive asset growth was primarily anchored by banking investments, which recorded an exponential jump of 57.5 percent, a sharp contrast to the single-digit investment growth rates captured in previous fiscal periods.

    “Our financial soundness indicators show clear signs of healing across the board. The industry is currently backed by strong liquidity buffers, meaning our financial institutions are more than capable of backing the credit needs of the private economy as the wider recovery takes hold,” Dr. Asiama added.

    Easing non-performing loans and credit costs

    A critical component of the central bank’s optimistic outlook is the visible improvement in asset quality. The industry’s Non-Performing Loan (NPL) ratio declined to 18.7 percent, dropping down from 22.6 percent recorded during the same period last year.

    To sustain this downward momentum, the central bank lowered its benchmark monetary policy rate by 150 basis points to 14.0 percent in March, a move designed to lower borrowing costs for commercial enterprises and minimize default risks.

    “The NPL levels, while declining due to a pickup in bank credit and a contraction in the actual stock of bad loans, still remain elevated and require sustained policy attention,” Dr. Asiama observed. “We are initiating full regulatory guidelines to ensure credit risk management practices are tightly enforced across all universal banks.”

    The central bank chief highlighted that the reduction in the policy rate in March is already translating into direct relief for market actors.

    “We are working actively with commercial banks to scale up financial intermediation. The downward adjustment of the policy rate in March eased the cost of capital, and we are happy to see some prime corporate borrowers already securing credit facilities at rates as low as 11.7 percent,” the Governor remarked.

    Building local shocks and projecting resilience

    Financial sector analysts note that the positive asset performance puts commercial banks in a favorable position to weather anticipated international economic risks, particularly global commodities fluctuations stemming from ongoing geopolitical developments.

    The Bank of Ghana reassured that macro-prudential measures implemented over the last two seasons have successfully ring-fenced the local sector against short-term external shocks.

    “We have proactively built sufficient foreign reserves, currently estimated at about 5.9 months of import cover,” Dr. Asiama stated. “This provides us with an exceptionally strong cushion. Together with fiscal authorities, we are monitoring global developments very closely and stand fully prepared to deploy targeted interventions to maintain the stability we have worked so hard to restore.”

    With domestic deposits steadily climbing and local lenders aggressively reorganizing their capital allocation toward income-generating public and private assets, the sector appears positioned for a highly profitable and resilient close to the current fiscal year.

     

     

     

     

     

  • Gold reserve rebalancing vital for debt stability – banking expert

    Gold reserve rebalancing vital for debt stability – banking expert

    By Adnan Adams Mohammed

    In a move that has sparked intense discussion within Ghana’s financial circles, the Bank of Ghana (BoG) has rebalanced a portion of its gold reserves into foreign exchange assets.

    With some observers questioning the timing, prominent banking consultant Dr. Richmond Atuahene has come out in strong support of the central bank, describing the move as a “justified and necessary” strategy to protect the nation’s creditworthiness.

    The clarification follows a recent briefing by BoG Governor Dr. Johnson Pandit Asiama to Parliament’s Economy and Development Committee regarding the central bank’s reserve management and the broader health of the banking sector.

    Liquidity vs. long-term buffers

    Dr. Atuahene explained that while gold is an excellent long-term hedge, it cannot always settle immediate “hard currency” bills. He noted that Ghana faced a significant external debt hurdle early this year including a critical Eurobond maturity at a time when fresh foreign currency inflows were limited.

    “Just having the gold does not automatically boost your reserves if you cannot manage it well,” Dr. Atuahene argued. “When you have a liability to pay, you need to make sure you pay it. The government has not generated any foreign currency, so what you have to do is reduce your gold reserves and get money to pay the debt.”

    He emphasized that under the Foreign Exchange Act, the BoG is mandated to manage reserves dynamically to ensure the cedi remains stable and that the state does not default on its international obligations.

    The success of the Gold Purchase Programme

    The decision to rebalance comes from a position of relative strength. Since the launch of the Domestic Gold Purchase Programme, Ghana’s gold holdings have seen an unprecedented surge:

    2021 Holdings: ~8.7 tonnes

    October 2025 Holdings: Over 40 tonnes

    Reserve Share: Gold now constitutes roughly 42% of Ghana’s Gross International Reserves.

    A standard central bank maneuver

    Dr. Atuahene maintained that converting gold to liquid foreign exchange is a standard tool in a central bank’s arsenal. By rebalancing, the BoG was able to maintain adequate liquidity in its portfolio, ensuring that the “New Year” debt obligations were met without triggering a currency crisis or a dip in investor confidence.

    “In foreign exchange management, you hedge in gold and other assets to make sure the cedi remains stable,” he added.

    As Ghana continues to navigate its post-debt-restructuring landscape, the BoG’s ability to pivot between physical gold and liquid cash will likely remain a cornerstone of its strategy to keep the economy afloat amid global volatility.

     

     

     

     

  • Ghana’s shift from public spending to T-Bills

    Ghana’s shift from public spending to T-Bills

    By Adnan Adams Mohammed

    The latest Monetary Policy Report from the Bank of Ghana (BoG) paints a stark picture of a shifting financial landscape.

    For years, the public sector was the primary engine of credit consumption, but 2025 marked a definitive pivot. Under the stewardship of Governor Dr. Johnson Asiama, the central bank, has revealed that credit to the public sector contracted by a staggering 25.5%, falling to GH¢4.8 billion by the end of December 2025.

    This isn’t just a data point; it is a signal of a significant slowdown in government activities and a radical restructuring of how Ghanaian banks manage their risks.

    A retreat from public lending

    The contraction in public sector credit suggests a government that is either tightening its belt or is being crowded out. While the private sector (households and enterprises) saw a nominal growth of 19.2% to reach GH¢106.2 billion, the “real term” reality is less optimistic. When adjusted for economic pressures, private sector credit actually slumped compared to 2024.

    Total gross loans and advances across the industry grew by only 16.2% in 2025, a noticeable dip from the 24.1% growth seen the previous year.

    The T-Bill fortress

    If banks aren’t lending as aggressively to the public or private sectors, where is the money going? The answer lies in the safety of government paper.

    In a dramatic shift of investment strategy, Treasury bills now constitute the lion’s share of bank portfolios. Their share jumped from 40.3% in 2024 to a dominant 62.3% in 2025. Meanwhile, long-term securities often the bedrock of sustainable development funding plummeted from 59.3% to 37.2%.

    This “flight to T-bills” reflects a banking sector that is prioritizing liquidity and short-term security over long-term risk.

    Who is getting the cash?

    Despite the overall tightening, the distribution of available credit remains heavily concentrated in a few specific pillars of the economy. Three sectors now command 72.1% of all credit:

    Sector Dec 2025 Share (%) Dec 2024 Share (%)

    Services 37.1% 31.7%

    Commerce & Finance 24.3% 27.0%

    Manufacturing 10.7% 10.5%

    The Services sector has emerged as the clear winner, seeing a nearly 6% increase in its share of the pie. Conversely, vital infrastructure sectors like Electricity, Water, and Gas saw their share dwindle to a mere 3.0%, raising questions about the future of utility expansion and reliability.

    The funding crunch

    The report also highlights a subtle shift in how banks are funded. Deposit growth has slowed, with the share of deposits in total liabilities falling to 72.8%. To compensate, banks have increased their borrowings and leaned more heavily on shareholders’ funds, which improved to 13.1% of total funding.

    “The growth moderation recorded during the reference period is a reflection of a broader economic recalibration,” the BoG report suggests.

    The bottom line

    Ghana’s financial sector in 2026 is waking up to a “new normal.” The government is taking less credit, banks are playing it safe with T-bills, and the Services sector is the anchor. For the average entrepreneur in manufacturing or utilities, however, the message is clear: the credit tap is significantly tighter than it was a year ago.

    As Ghana moves further into 2026, the challenge for Dr. Asiama and the BoG will be to ensure that this “moderation” doesn’t turn into a stagnation that stifles the very growth the country needs.

     

     

     

     

     

     

     

  • Regulatory Sandbox: BoG approves first 6 Virtual Assets coys

    Regulatory Sandbox: BoG approves first 6 Virtual Assets coys

    By Adnan Adams Mohammed

    In a landmark move to modernize the nation’s financial landscape, the Bank of Ghana (BoG) has officially admitted six pioneering companies into its Regulatory Sandbox.

    This initiative marks a significant step toward integrating virtual assets into the formal economy while ensuring the stability of the financial system.

    The selected cohort will participate in a one-year testing phase designed to help the central bank validate proposed regulatory frameworks for Virtual Asset Service Providers (VASPs).

    The Admitted Firms

    Following a rigorous selection process, the central bank named the following entities as the first participants in this specialized virtual asset window:

    Transika Ltd.

    One Africa Securities Ltd.

    Mansu Technologies Ltd.

    Payafrione GH Ltd.

    Akuna Wallet Ltd.

    Afrix Paycoin Ltd.

    Testing Innovation in a Controlled Environment

    According to a statement issued by the Bank of Ghana last week, the sandbox focuses on critical areas of the digital asset ecosystem, including:

    1. Exchange: Trading between virtual assets and fiat currencies.

    2. Custody: Secure storage and management of digital assets.

    3. Administration: Management of virtual asset systems.

    4. Issuance: Creating and launching new digital tokens.

    The sandbox acts as a “live” but controlled laboratory, allowing the BoG to observe how these technologies interact with the market without posing a systemic risk.

    Balancing Growth and Protection

    The BoG emphasized that the sandbox is a learning tool, not a shortcut to full licensing. Participation does not constitute final regulatory approval, and the Bank maintains the authority to withdraw any firm that fails to meet performance benchmarks or compliance standards.

    “The Regulatory Sandbox is part of our broader strategy to foster financial inclusion through innovation while maintaining a robust shield for consumer protection and financial stability,” the statement read.

    Why This Matters

    This move follows the recent passage of the Virtual Asset Service Providers (VASP) Bill by Parliament earlier this month. With an estimated 3 million users already active in Ghana’s virtual asset space, the central bank is racing to bridge the gap between unregulated crypto-activity and a secure, transparent digital economy.

    The results of this one-year trial will likely shape the permanent rules that will govern all future digital currency and blockchain-based businesses in Ghana.

    Meet the Cohort: Profiles and Technologies

    Here is a deeper look at the participants and the technological frontiers they are exploring.

    While all six firms are operating within the BoG’s Virtual Asset framework, each brings a unique focus to the sandbox, ranging from creative economy payments to institutional-grade digital securities.

    1. Akuna Wallet Ltd.

    Key Focus: Global payments for the creative economy.

    Tech Profile: Developed in partnership with the Stellar Development Foundation and backed by actor Idris Elba, Akuna Wallet solves “last-mile” payment issues for Ghanaian creators. It provides users with virtual US bank accounts to receive royalties and earnings from global platforms (like TikTok or YouTube) and converts them instantly into Ghana Cedis via blockchain.

    2. One Africa Securities Ltd.

    Key Focus: Digital securities and tokenization.

    Tech Profile: Part of the Onafriq (formerly MFS Africa) or One Africa Markets ecosystem, this firm is likely testing the tokenization of traditional financial instruments. They are expected to pilot systems that allow for the “fractional” ownership of stocks or bonds using distributed ledger technology (DLT).

    3. Transika Ltd.

    Key Focus: Cross-border remittances and stablecoin integration.

    Tech Profile: Transika focuses on reducing the cost of sending money across African borders. In the sandbox, they will be testing how stable coins. (digital assets pegged to the Dollar or Cedi) can speed up settlement times and bypass expensive intermediary banking networks.

    4. Mansu Technologies Ltd.

    Key Focus: Custodial services and secure digital infrastructure.

    Tech Profile: Mansu is expected to validate high-security “cold storage” and “hot wallet” solutions. Their participation is critical for the BoG to establish standards for how digital assets should be stored to prevent theft and hacking.

    5. Payafrione GH Ltd.

    Key Focus: Merchant payments and virtual asset POS systems.

    Tech Profile: This firm is looking at the “retail” side of crypto. They are testing software that allows local Ghanaian merchants to accept digital assets as payment for goods and services, with real-time conversion into Cedi to protect vendors from volatility.

    6. Afrix Paycoin Ltd.

    Key Focus: Virtual asset issuance and exchange.

    Tech Profile: Afrix Paycoin is focused on the liquidity side of the market. They are testing a regulated exchange platform where Ghanaians can safely buy and sell verified virtual assets under the direct oversight of the BoG’s monitoring tools.

    The Sandbox Process

    The companies will follow a structured path over the next 12 months, as illustrated below:

    Preparation: Finalizing test cases and security protocols with BoG engineers.

    Testing: Operating with a limited number of real customers to observe system behavior.

    Evaluation: Regular reporting on transaction transparency and Anti-Money Laundering (AML) compliance.

    Exit: Determining if the business model is ready for a full VASP license or if it needs further refinement.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

  • Industry players upbeat as the economy turnaround …appeal for further rate cut to spur cheaper credit

    Industry players upbeat as the economy turnaround …appeal for further rate cut to spur cheaper credit

    By Adnan Adams Mohammed

    As stakeholders of the Ghanaian economy are upbeat about the impressive performance with all macroeconomic indicators recording positive figures, industry players desire for more.

    The Association of Ghana Industries (AGI) is urging the Bank of Ghana to further ease monetary policy, citing declining inflation and exchange rate stability as opportunities to unlock cheaper credit for industry.

    AGI CEO Seth Twum-Akwaboah stresses that a more accommodative credit environment will support investment, production, and job creation. “We expect interest rates to fall with consistent policy rate drops,” he said.

    Dr Assibey-Yeboah’s stance

    The call comes as Ghana’s economy grew 3.8% (year on year) in October 2025, driven by services and industry. However, economist Dr. Mark Assibey-Yeboah warns an overvalued cedi hurts exporters and state revenue.

    The former Member of Parliament for New Juaben South described the Ghana cedi as currently overvalued, saying while the strength of the local currency is not artificial, it has exceeded an optimal level for the economy.

    “Our currency right now is overvalued. It’s not artificial, but there’s an optimum that we have to reach. This exchange rate that people are fixated on is affecting a lot of exporters,” he said.

    He pointed to the Ghana Cocoa Board (COCOBOD) and the Ghana Revenue Authority (GRA) as institutions bearing the brunt of the strong cedi.

    “If you speak to COCOBOD right now, they are reeling under the strong currency. COCOBOD is not happy about the exchange rate, and GRA is not, as it’s affecting their revenues. All exporters are reeling under the currency,” he stated.

    According to him, even the Ghana Gold Board (GoldBod) could benefit from a slightly weaker currency.

    “Even GoldBod, if the currency weakens some more, they will not incur the losses,” he noted.

    Dr. Assibey-Yeboah further explained that a strong currency could make Ghana a less attractive destination for tourists.

    “A person coming to Ghana for a vacation, if the dollar is strong, they are not happy. They want to exchange the cedi and get more cedis,” he said.

    As the US dollar demand rises amid businesses restock, the Bank of Ghana assures exchange rate stability with US$13.8 billion in reserves.

    October’s Monthly Indicator of Economic Growth

    Ghana’s economy recorded a provisional year on year growth rate of 3.8% in October 2025, up from 3.0% in the same period last year, according to the Monthly Indicator of Economic Growth (MIEG) released by the Ghana Statistical Service (GSS).

    The latest data point to a year-on-year expansion in economic output, signalling a stronger overall performance compared to October 2024, largely driven by sustained activity in the services and industry sectors.

    The services sector remained the main growth driver, expanding by 5.5% in October 2025, marginally lower than the 5.6% recorded a year earlier. Despite the slight slowdown, the sector accounted for a dominant 74.7% of total economic growth, supported mainly by communication, wholesale and retail trade subsectors.

    The industry sector posted a notable improvement, recording growth of 3.0%, a sharp rise from 0.4% in October 2024. This stronger performance reflects a broader expansion in industrial activity and contributed 28.7% to the overall growth rate for the month.

    In contrast, agriculture growth slowed significantly to 0.9%, compared to 2.1% in the same period last year. The data suggest that the pace of economic activity within the agriculture sector was less pronounced, contributing just 1.3% to the overall growth recorded in October.

    Overall, the October 2025 MIEG figures indicate a steady recovery in economic momentum, underpinned by resilient services activity and improving industrial performance, even as agriculture continues to lag behind other sectors. The GSS notes that the MIEG provides a timely snapshot of short-term economic trends, complementing quarterly and annual GDP estimates used for broader policy analysis

    FX intermediation programme

    In December 2025, the Bank of Ghana announced plans to sell up to US$1 billion to the market in January 2026 under its Foreign Exchange Intermediation Programme.

    The auctions, according to the bank, are being guided by the newly approved Foreign Exchange Operations Framework.

    The central bank said the move marks the operationalisation of measures under the framework and aligns with its reserve accumulation objectives.

    It added that the programme is expected to help dampen volatility in the foreign exchange market when needed, particularly under the Domestic Gold Purchase Programme.

    In November 2025, the Bank of Ghana said its Board had approved the new Foreign Exchange Operations Framework to clarify the objectives and principles guiding its FX operations.

    The regulator said the framework reinforces its commitment to macroeconomic stability under the inflation-targeting regime and a flexible, market-determined exchange rate system.

    Cedi’s performance in 2025

    The Bank of Ghana reported that the cedi recorded a cumulative appreciation of 40.67% against the US dollar in 2025, ending the year at about GH¢10.45 to the dollar.

    In December, average daily trading volume on the interbank market stood at US$19.7 million, contributing to a total monthly volume of about US$394 million.

    Attention is now turning to the central bank’s strategy for the first quarter of 2026, a period when the cedi typically faces pressure from rising import demand and dividend payments to foreign shareholders.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

  • Hurray! Non-Interest Banking Finally Here …as Investors and banks rush for license

     

     

    By Adnan Adams Mohammed

    The operational guidelines for non-interest banking (NIB) in Ghana have been published by the Bank of Ghana (BoG), marking a significant milestone in the nation’s financial landscape.

    This new framework is set to deepen financial inclusion, promote ethical finance, and integrate Ghana’s banking system with the global non-interest finance industry. The move has generated considerable excitement, with rumors of existing banks and new investors preparing applications for licenses.

    A New Frontier in Finance

    The culmination of this initiative is credited to the efforts of the Governor, Dr. Johnson Asiama, and the advisor on non-interest banking and finance, Professor John Gatsi.

    The updated guideline, following an exposure draft, provides a clear roadmap for operators, ensuring they function within established prudential and regulatory standards.

    This framework introduces a dual application system: existing conventional financial institutions can apply for a dedicated “window” to offer NIB products, while new investors can apply to establish full-fledged non-interest banks.

    Reports suggest at least five existing banks may apply for windows by the end of January, with large investors lining up for full-fledged licenses.

    Key Features of the BoG Guidelines

    The comprehensive Guideline for the Regulation and Supervision of Non-Interest Banking addresses critical operational and governance aspects:

    Corporate Governance: Licensed NIBIs must establish a Non-Interest Banking Advisory Committee (NIBAC) with at least three members who possess expertise in banking, finance, law, and NIB principles. This committee is responsible for ensuring products align with NIB principles and managing risks.

    Operational Segregation: Institutions offering NIB through a “window” must maintain strict operational and financial separation, including operating a separate Non-Interest Finance Fund (NIFF) that cannot be commingled with conventional funds.

    Capital Requirements & Liquidity: Capital requirements for NIBIs will align with existing central bank standards. NIBIs are prohibited from investing in interest-bearing securities and must maintain their reserves and liquid assets in NIB-compliant instruments.

    Tax Neutrality: The guideline also references tax neutrality, an issue expected to be determined by a joint team coordinated by the Ghana Revenue Authority (GRA).

    Accessibility: The BoG has emphasized that non-interest banking is open to all, regardless of religious affiliation, and participation is strictly voluntary.

    Future Outlook: Sukuk and Infrastructure Finance

    The introduction of non-interest banking extends beyond traditional banking services. The Securities and Exchange Commission (SEC) is collaborating with the BoG to develop a harmonized framework for non-interest capital market instruments.

    This collaboration is anticipated to lead to the future introduction of Sukuk (non-interest bonds), which can provide alternative and ethical financing for major infrastructure projects in Ghana.

    Non-interest banking is a significant step towards a more inclusive and resilient financial system, with the potential to revolutionize how the financial sector supports the real economy.

    Welcome to the new era of banking in Ghana!

     

    Read full Guideline on Non-Interest Banking in Ghana below:

     

    GUIDELINE-FOR-THE-REGULATION-AND-SUPERVISION-OF-NON-INTEREST-BANKING-IN-GHANA-130126

  • Bokpin’s Advocate for Christ Ghana group pitches religious-biasness against Non-Interest Banking implementation

     

     

    By Adnan Adams, Financial Journalist

    In one of readings of news item, I came across a news publication attributed to a Christian faith group named Advocate for Christ Ghana.

    My initial investigations revealed that the group is led by one Godfred Bokpin, who had met with officials of the Bank of Ghana on Zoom to say they do not agree with the introduction of Non-Interest banking in Ghana.

    My intelligence revealed that they were asked to indicate their reasons. Pitifully, all they could say was that ‘Ghana is a Christian country, so they want nothing to do with Islam’, claiming Shariah principles are being introduced.

    The Bank of Ghana advised them against these expressions, stating they have a heavy dose of religious intolerance and are arrogating to themselves the role of regulator of other religions. They were told that even though the Bank doesn’t meddle in religious matters, it was important to let them know that Ghana is a Christian-majority country but it is a secular country, which implies no religion is superior to the other in the eyes of the law. They should be guided by the dangers of religious intolerance.

    They say a lot of lies about non-interest banking without showing any evidence. Intelligence shows that they are the first group of engagements by the Bank of Ghana, primarily led by Professor Godfred Gbokpin of the University of Ghana. At the engagement, the group was advised to stop using derogatory words against other religions, as there is freedom of religion that must be practiced without being a regulator of other religions.

    The group was told how the Bank of Ghana engaged representatives of Christian leaders and that what they were saying was only fear-mongering without any proof or evidence. The group claimed those Christian leaders who were engaged in discussions with the Bank of Ghana were not qualified since they were experts. The group was told of the quality of the people brought by the Christian leaders, including former treasury managers, bankers, Rev. Fathers, former Vice Chancellors, Council Members, Apostles, and Church Administrators.

    The group was further advised that the Bank will not engage with individual groups apart from representatives of the Christian leadership as is known in Ghana. They were advised not to elevate themselves above their leaders, since that would mean disobedience and disrespect for leadership. The engagement with them ended with a request that if they know any country where the introduction of this model of banking has destroyed, destabilized the financial system, and discriminated against people, they should present such a report. To date, our intelligence shows the Bank of Ghana has not received anything from this group.

    The group indicated their aim is to ensure that this banking model is not established, so they are not interested in any engagement results. Reports received show that Prof. Bopkin, who is a former Muslim, is noted for discrimination against Muslims and shows a negative attack on anything Muslim. Recently, his comments on the Mfatsipim religious differences are clear for all to see. Our intelligence also revealed that two weeks ago, he was knocking on the doors of radio stations for him to condemn non-interest banking and called on the Governor to resign. When that opportunity was denied because of the intolerant posture, he then resorted to this article.

    Ghanaians should ignore him and this Advocate for Christ Ghana, since the Bank of Ghana engaged with representatives of Christian Leaders and assurances and understanding were reached, for which the guidelines reflected. If there is an aspect they want an explanation, we are told the Bank will provide an explanation.

    Intelligence from BoG further revealed that when representatives of both Christian and Muslim leaders met for the final session, assurances were given on the name, governance structure, and global setting of Non-Interest banking. The Bank of Ghana has lived up to that promise. The bank is not dealing with any religious bodies to guide its operations. All the bodies mentioned in the guideline are international standards-setting bodies recognized in the global banking ecosystem.

    The interesting thing is that members of Advocate for Christ Ghana are members of churches whose leaders were at the various engagement sessions. Another intelligence has it that the Church leaders provided advice on the deployment and promise any further assistance.

    Another development is that some members of the group who are chief executives in the energy sector revealed they were behind this group, together with just a few leaders of one of the groups of leaders who participated in the engagement.

    I am told one of the Christians at the meeting with Advocate for Christ Ghana advised them to “focus on the real advocacy for Christ found in Matthew 28:18-20 to win souls for Christ instead of spreading propaganda.” He said “soul-winning and evangelism are the real advocacy for Christ. This radio station Christianity should give way to real soul-winning.”

    Now, there is a misconception that there is going to be an introduction of Shariah in Ghana. The Bank of Ghana will never do that in a banking environment. That is never going to happen. It is sad when those expected to know rather disappoint the public. Shariah is simply the set of rules from the Quran which guide the social life, worship, and communal life of Muslims. The Islamic religion has been with us since independence and is considered by our constitution as one of the religions to be practiced in Ghana.

    In the courts, parliament, and ceremonies, the use of the Quran or the Bible is allowed. Christian marriages are conducted based on the Bible, while Muslim ones are based on the Quran. This should tell our intellectuals that Shariah is being practiced in Ghana, at least since independence; it is therefore difficult to understand why the propaganda.

    We are confidently told by the Bank of Ghana that the development of the guideline is to provide a choice of banking products for all. It is a fact that extreme aspects of pronouncements regarding Shariah are not countenanced in Ghana, let alone being a problem. All commercial disputes regarding non-interest banking which are not resolved through dispute resolution in the guideline will be resolved by our normal courts.

    If you are picking to do propaganda, you will not see these provisions in there. For the avoidance of doubt, there is no proposition and there will not be any court system for non-interest banking apart from the existing commercial courts. I am told the Bank of Ghana has all the engagement reports, including the fact that Non-Interest bank is global and therefore has global financial standard-setting bodies which are not religious bodies.

    “I am a Christian” said one of our sources, “I do not support the behavior of Professor Godfred Bokpin, who wanted to be a member of appointees of this Government after dropping from NPP. I also encourage the Bank of Ghana to speed up, work to start the license process from January 2026.”

    All banks interested in the window should apply for the process to start, together with FinTech firms interested in Non-Interest banking products, to expand and deepen financial inclusion and business development for all.

  • Hello Bright Simon; come again with well-informed critique of Ghana’s Non-Interest Banking Framework 

     

    BY Adnan Adams Mohammed, Award-Winning Journalist 

     

    Hello Bright Simon, I have been inundated with a number of calls by some concerned Ghanaians on the recent development and successes surrounding the Non-Interest Banking and Finance system the Bank of Ghana seeks to operationalize in Ghana in the spirit of secularism to provide equal access to financial products and services to ensure inclusivity. 

    The journey to Ghana’s Non-Interest Banking and Finance started with a wonderful, participatory stakeholders engagement for wholesome acceptability by Ghanaians, irrespective of religious faith. 

    This is where I am tempted to believe Bright Simon bereft of knowledge with regards to the various milestones culminating into the ‘Exposure Draft Framework’ he sought to critique but with limited knowledge. 

    If Mr Simon was to be following the various stages and series of extensive stakeholder consultations across the various segment of the Ghanaian socio-economic facet, he would have been well acquainted to the fact that, the Bank of Ghana did not on its volition to adopt one of the commonly used name ‘Non-Interest Banking’ globally to represent Ghana’s inclusive banking services. 

    Adoption of ‘Non-Interest Banking and Finance’ name

    To put it on record, the adoption of the name ‘Non-Interest Banking and Finance’ was by recommendation of experts, Muslims and Christian clerics at a stakeholder engagement conference. The recommendation became necessary because all interested stakeholders acknowledged for the kind of secular education, governance and economic system that prevail in Ghana, the name situated perfectly to the intent for the introduction of a kind of ‘participatory’ financing system in the country. 

     

    A photo of the leaders of the Christian community with the Governors of Bank of Ghana and heads of department after a stakeholder engagement session on the Non-Interest Banking and Finance

    It must be made clear that the name or semantics used for such a financial system can take many forms, such as; Ethical financing, Participatory financing, Interest-Free Banking, Sharia-Compliant Finance, Halal Finance etc., so for Mr Simon to misrepresent facts that, Bank of Ghana deliberate adopt the name ‘Non-Interest Banking’ to shy away from using the name ‘Islamic banking’ for acceptability is an act of hasty conclusion without adequate knowledge. 

     

    Governance and Oversight 

     

    On the governance system of the Non-Interest Banking and Finance which will be regulated by the Bank Finance Ghana and the Securities and Exchange Commission through the Non-Interest Finance Advisory Committee or Council

    (NIFAC) and Non-Interest Banking Advisory Committee or Council (NIBAC), I seek to ask Mr Simon that; which book or source of reference indicate that the name of the governance system on Non-Interest Banking and Finance MUST include ‘Sharia’?  

    Simply put, NIBAC and NIFAC are key components of Ghana’s Non-Interest Banking and Finance framework:

    NIBAC: Provides guidance and oversight on non-interest banking operations, ensuring compliance with fair principles and regulatory requirements.

    NIFAC: Offers expertise and advice on non-interest finance products and services, promoting innovation and industry growth.

    Their functions include: Regulatory compliance: Ensuring adherence to fair principles and regulatory frameworks;

    Industry guidance: Providing expertise and advice on non-interest banking and finance;

    Risk management: Identifying and mitigating risks associated with non-interest banking and finance; and

    Product development: Supporting innovation and development of new products and services.

    These committees play a crucial role in promoting Ghana’s non-interest banking and finance sector. 

    To this, I ask Mr Simon, where does the non-use of ‘sharia’ in the name of the oversight committees make the inclusive, participatory financial system ‘null and void’?

    As an award-winning financial journalist with extensive knowledge of Islamic Banking and Finance, I strongly condemn the baseless and divisive critique of Ghana’s non-interest banking framework by Bright Simons. 

    I deem his approach to be undermining the effort of the present government’s initiative to pursue a financial inclusive economy as a clear example of religious intolerance and a desperate attempt to stifle financial inclusion.

    Ghana is a secular state with a diverse population, and it is our duty to ensure that our financial system is inclusive and caters to the needs of all citizens, regardless of their faith or background.

    The introduction of non-interest banking is a welcome development that will provide Ghanaians with alternative financial products and services that align with their values and beliefs.

    I urge all Ghanaians to reject Bright Simons’ divisive rhetoric and support the Bank of Ghana’s efforts to promote financial inclusion and diversity.

    We must stand together to build a Ghana where everyone has access to financial services, regardless of their background or faith.

     

  • BoG commended for stakeholders engagement on NIBF framework

     

    The multi-sectorial stakeholders engaged by the Bank of Ghana in effort to draft a framework for the introduction of Non-Interest Banking and Finance in Ghana have commended the approach.

    During an engagement with journalists Winneba, Professor John Gartchie Gatsi, an Advisor on NIBF explained that the Securities and Exchange Commission, National Insurance Commission and the Bank of Ghana are working together to develop frameworks needed to regulate Non-Interest Banking and Finance in Ghana.

    The Central Bank, an independent regulator of the banking industry and mandated to expand the financial ecosystem, is poised to step up processes to deepen financial inclusion, broaden real sector financing through the NIBF. Also, per its mandate which cannot be tele-guided, the bank adopted the approach of stakeholder engagement to ensure transparency, avoiding religious misconceptions and improving on financial inclusion.

    In light of this, the Bank considers the approach adopted by the experts-team as part of the roadmap to draft an operational framework for the introduction of Non-Interest Banking and Finance in Ghana as progressive.

    The stakeholder engagement has become necessary as no group of people or an individual has the power nor influence to direct how the Bank of Ghana functions.

    The critical stakeholders in and outside Ghana include: the media; Christian leaders and organisations (including; Christian Council, Ghana Pentecostal , Alliance for Christian Advocacy Africa and Charismatic Councils, Catholic Bishops Conference ); and selected professional bodies. The advisor explained that it is impossible to invite the leadership of all religious groups.

    On the jurisdictional front, the team had engagement with the various institutions in the United Kingdom virtually. In the UK, the team engagement Bank of England through Prudential Authority of the UK and Financial Conduct Authority of the UK. The also visited Various institutions in Malaysia and Nigeria and is convinced about the non- discriminatory business model of. NIBF

    At the engagements with Journalists in Winneba, Prof. Gatsi explained that, the Bank is working hard to open the door for Non-Interest Banking and Finance to the private sector to invest in this banking model based on the commercial benefits and overall contribution to financial sector development. He further explained that it is not the government nor the Bank of who is establishing the NIBF but private individuals who meet the licensing requirements.

    Clarifying the aspects of religious misconceptions, he explained that, all those misconceptions are not real and that the reality is that the economy of Ghana is the gainer as the economy will be supported through the new banking and finance model.

    Consequently, he advised that no language is a religion and also the Bank of Ghana will not meddle in religious matters and will not show bias to any religious groups or any act underpinning individual or group who has not conducted any empirical study with the conclusion that NIBF is a destroyer of economies and promote a particular religion.

    He therefore appealed to all to cherish the interfaith dialogue platform to address religious issues.