Ghana’s steady economic rebound has ignited fresh calls for a bold new direction in financial policy, one that embraces non-interest or participation-based finance as a cornerstone for lasting economic resilience and inclusive growth.
As global economies turn toward ethical, asset-backed, and sustainable financial systems, experts believe Ghana must not be left behind.
The latest ICD–LSEG Islamic Finance Development Report 2025 released by the Islamic Finance Research Institute Ghana (iFRIG) paints a compelling picture of a world rapidly shifting toward non-interest finance, a system proven to deliver stability, transparency, and shared prosperity even in uncertain economic times.
The report reveals that the global Islamic finance industry has surged to nearly US $5.98 trillion in assets, growing by an impressive 21 percent in 2024 alone. It now operates across 140 countries, including 84 non-OIC nations, signalling its acceptance far beyond traditional markets. If current trends continue, the sector is projected to exceed US $9.7 trillion by 2029, with the number of non-interest financial institutions surpassing 2,250 worldwide. This extraordinary rise demonstrates that non-interest finance has evolved from a niche alternative into a mainstream global force, reshaping how nations fund development, empower entrepreneurs, and build sustainable economies.
According to the 2025 report, Islamic finance is no longer confined to banking. It spans a diversified ecosystem that includes sukuk (non-interest bonds), Islamic funds, takaful (non-interest insurance), and a range of other financial institutions. Islamic banking alone accounts for about 72 percent of the industry’s total assets, while sukuk, now worth more than US $1 trillion, have become vital instruments for governments and corporations financing major infrastructure and renewable energy projects. The report also shows that ESG-linked sukuk have reached a record US $61.5 billion in outstanding value, with issuances rising by 14.7 percent in 2024, signalling a global shift toward ethical and climate-friendly financing.
The report identifies Malaysia, Saudi Arabia, the United Arab Emirates, Indonesia, and Pakistan as the world’s most advanced markets, driven by clear regulatory frameworks, strong governance, and widespread financial literacy. Malaysia continues to lead globally in knowledge and awareness, while Saudi Arabia dominates in financial performance. Malaysia alone accounts for 36 percent of global sukuk outstanding, demonstrating how strategic policy adoption can make non-interest finance a major contributor to national development.
Beyond the figures, the moral and structural appeal of non-interest finance lies in its emphasis on fairness, transparency, and social responsibility. It discourages speculative and interest-based transactions, instead promoting shared risk, ethical investment, and asset-backed financing. These features anchor economies in the real sector rather than volatile markets. This has made non-interest finance especially attractive to both Muslim and non-Muslim investors seeking ethical alternatives to conventional finance.
In the context of Ghana’s improving macroeconomic landscape, marked by easing inflation, stronger reserves, and renewed growth momentum, experts argue that the country is well-positioned to explore this transformative financial model. Introducing non-interest finance could diversify the financial system, attract global ethical capital, and empower small businesses while advancing the nation’s sustainability goals.
As the Finance Minister laces his boots to go to Parliament to present the national budget, it is timely for him to consider non-interest finance as a new financing model or a strategic addition to Ghana’s funding mix. We urge him to explore the sukuk, the non-interest bond instrument, as a viable option to support the government’s “Big Push” agenda for infrastructure and industrial development. This model has been successfully adopted by countries such as Nigeria, Togo, Benin, Niger, Germany, China, and Luxembourg, where sukuk proceeds have been channelled into building roads, hospitals, schools, and renewable energy projects without increasing interest-bearing debt.
The 2025 ICD–LSEG report shows that nations which integrate sukuk into their financing frameworks enjoy higher investor confidence, stronger sustainability performance, and more diversified funding sources. It notes that 53 countries now operate takaful systems, 50 have sustainability guidelines, and 57 have formal Islamic finance regulations, indicating global readiness for this model. The report also highlights that 1,186 educational institutions now teach Islamic finance, while 5,291 research papers were produced in 2024 alone, evidence of growing global expertise and innovation in the field.
As the world embraces a new financial order built on ethics and inclusion, Ghana stands at the threshold of opportunity. The call is clear: to sustain its economic recovery and future-proof its progress, Ghana must take deliberate steps to integrate non-interest finance into its economic framework. Doing so will not only strengthen resilience but also align the country with a global movement toward sustainable, fair, and inclusive finance, making Ghana’s growth story one that endures for generations to come.Top of Form
