IMANI Africa Vice President Bright Simons has questioned whether Ghanaian judges and legal professionals are ready to adjudicate disputes rooted in Shariah compliant finance as Bank of Ghana (BoG) advances plans to introduce Islamic Banking in the country. He raised concerns in an article published Saturday December 14 2025 about whether legal profession has expertise to handle disputes following BoG’s December 9 2025 release of exposure draft guidelines for Non Interest Banking.
The policy analyst argues that beyond branding Islamic banking as non interest banking deeper legal and institutional challenges remain unaddressed. He explains that at heart of Islamic banking is strict ethical rule requiring banks to earn profits from real economic activity such as trade and assets rather than interest or speculative deals. While this may sound similar to standard banking discipline the details are far more complex requiring careful interpretation under Islamic law often by trained Shariah scholars.
Bright Simons admits BoG’s draft guidelines make clear that licensed institutions must accept ethical restrictions rooted in Islamic values. In practice this means disputes will involve not only financial contracts but also religious principles defining what is permissible. He notes that determining real assets such as Murabahah cost plus sale requires specific expertise in Islamic law.
The policy analyst observes that regulators have avoided direct references to Shariah in naming governance bodies instead using neutral acronyms such as Non Interest Banking Advisory Committee (NIBAC) and Non Interest Finance Advisory Committee (NIFAC). However he points out that when disputes arise labels will matter less than substance as someone will still need to interpret and apply Shariah principles.
This raises serious questions about dispute resolution according to the IMANI Africa Vice President. If disagreement between bank and customer reaches courts the question becomes whether Ghanaian judges are trained to interpret Shariah compliant financial contracts. Even in arbitration where regulators prefer disputes to be settled the concern remains about how many qualified arbitrators understand both Ghanaian commercial law and Islamic finance rules.
Without this expertise there is risk of confusion delays and inconsistent judgments according to Bright Simons. That uncertainty could discourage investors and undermine public trust in system. The policy analyst notes Islamic banking cannot function properly without Islamic finance experts embedded within licensed banks and across broader financial ecosystem.
Encouragingly he admits some Ghanaian professionals are already pursuing certifications in this area but scale remains limited. As country moves closer to diversifying financial landscape with Islamic Banking the critical question is whether complementary institutions are ready and well versed for such major shift. Islamic experts are needed in banks that get licensed to become involved.
Bank of Ghana published exposure draft of Guideline for Regulation and Supervision of Non Interest Banking on December 9 2025 nearly decade after passage of Banks and Specialised Deposit Taking Institutions Act 2016 (Act 930). Stakeholders have until December 24 2025 to submit feedback on proposed framework. The proposed guidelines outline operational governance and prudential standards that will govern institutions seeking to operate under model.
Professor John Gatsi Adviser to Bank of Ghana leads implementation team and has stated central bank aims to conclude nationwide stakeholder consultations by December 2025. The rebranding from Islamic Banking to Non Interest Banking reflects framework’s broader ethical scope beyond any single faith tradition. Professor Gatsi clarified shift promotes inclusivity and aligns with Bank of Ghana Act Section 18 1R which legally enables non interest financial services.
Governor Dr Johnson Asiama has assured central bank has internal capacity to handle Islamic Banking in Ghana noting Head of Banking Supervision Ismail Adam has received intensive training and is well versed in Islamic finance principles. The Governor announced Non Interest Banking and Finance (NIBF) plans during 124th Monetary Policy Committee press conference in Accra on May 24 2025 emphasizing Bank’s readiness to operationalize Islamic financing and banking services.
Bright Simons further warned legal disputes arising from Islamic finance instruments such as profit sharing and partnership contracts could be difficult for Ghanaian courts to adjudicate since such arrangements are grounded in Islamic jurisprudence rather than Ghana’s statutory or common law traditions. The inconsistency between prohibiting religious symbols while requiring compliance with Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) standards creates confusion for financial institutions customers regulators and judiciary.
The IMANI Africa Vice President criticized proposed window system which permits conventional banks to offer non interest products alongside traditional interest based services. He cautioned model could be exploited allowing banks to benefit from regulatory or tax incentives without fully adhering to risk sharing principles central to non interest banking. This arrangement differs from full fledged non interest banks that would operate entirely under Islamic finance principles.
Current banking legislation under Act 930 of 2016 provides foundational legal framework for NIBF implementation though specific provisions including establishment of Shariah governance structures dispute resolution mechanisms and tax treatment require further development. Bank of Ghana sets out to strip religion from so called non interest banking by placing prohibition on religious symbolism in Paragraph 85 but then proceeds to demand all participants adhere to AAOIFI standards in Paragraph 6.
The exposure draft arrives at time when Ghana seeks to tap into global Islamic finance market valued at over 5 trillion US dollars in 2024 and projected to reach 7.5 trillion US dollars by 2028 according to Standard Chartered. The global Sukuk market alone is expected to grow from 1.08 trillion US dollars in 2024 to 1.295 trillion US dollars in 2025 driven by rising investor appetite for ethical asset backed financial instruments.
Bank of Ghana hosted capacity building program on December 1 2025 targeting banks insurers and capital market players. The training focused on Sukuk structuring non interest product development licensing procedures and governance models. Central bank is also working with professional bodies and academic institutions to embed non interest banking concepts into training programs to build necessary expertise.
Bright Simons warned proposed framework could result in non interest banking system that appears well designed on paper but proves difficult to sustain in practice. He urged Bank of Ghana to be transparent about introducing Islamic Banking backed by clear legislation on taxation bonds liquidity support and dispute resolution. Without such reforms Ghana’s non interest banking regime may struggle to attract both investors and customers according to his analysis.
Ghana is accelerating plans to become West Africa’s Islamic finance hub with comprehensive regulations for banking insurance and capital markets due by year end 2025. Bank of Ghana Securities and Exchange Commission and National Insurance Commission are developing joint framework covering non interest banking Sukuk bonds and Takaful insurance. Joint committee has been formed to ensure synchronized guidelines across banking capital markets and insurance sectors.
The initiative follows working visit to Malaysia where Ghana explored models for funding infrastructure gaps in energy healthcare and technology through Sukuk. Ghana aims to create competitive edge in Africa’s 100 billion US dollars Islamic finance market with potential to fund transformative national projects. The Mahama administration advances vision to position Accra as region’s ethical finance gateway.
The framework requires institutions to avoid names or branding suggesting religious association whether Islamic or Christian to preserve market neutrality. Non interest banking in Ghana will be driven by ethical financial practice and inclusivity rather than religious identity according to regulatory design. Conventional banks wishing to offer non interest products will apply for window license while institutions planning to operate entirely under non interest principles will require full non interest banking license.
Implementation timeline suggests regulatory guidelines will be finalized by December 2025 enabling licensed institutions to begin offering NIBF products in 2026. Framework will establish supervisory mechanisms capital adequacy requirements and operational standards ensuring customer protection and financial system stability. Phased approach excludes microfinance institutions rural banks and community banks from first stage allowing regulators to identify challenges early.
Ghana has provisions for Islamic banking since 2016 under Act 930 and Bank of Ghana is now providing needed regulations and guidelines to operationalize it according to Professor Gatsi. The framework builds on lessons from countries such as Nigeria Malaysia Kenya and South Africa where model has demonstrated viability. Nigeria in particular has provided instructive case studies prompting recent knowledge sharing mission by BoG’s specialized team.
Some banks in Ghana are already demonstrating strong interest in rollout of Islamic banking viewing it as timely opportunity to expand product offerings and diversify revenue streams. Several institutions have begun internal preparations including setting up dedicated non interest banking windows and training staff in Islamic finance principles in anticipation of operationalization. Industry participants civil society and public are expected to engage actively before final regulatory framework is issued in 2026.
The debate reflects fundamental questions about whether complementary legal and institutional infrastructure can support introduction of alternative financial system requiring specialized knowledge. Success of non interest banking framework will depend on building adequate capacity across judiciary legal profession regulatory agencies and financial institutions to handle unique characteristics of Shariah compliant finance. The ongoing consultation process provides opportunity for stakeholders to address these critical implementation concerns.
