The Islamic Finance Research Institute of Ghana (IFRIG) has called for a speedy implementation of Islamic Banking in Ghana.

The call is on the back of a recent statement by the Bank of Ghana governor, Dr. Ernest Addison, who expressed caution regarding the rollout of Islamic Banking activities in Ghana.

The central bank chief cited the need for robust regulatory frameworks to support such endeavours in the event of an eventual rollout.

While acknowledging the importance of regulatory and legal frameworks, IFRIG, with the benefit of several research papers on Islamic Banking in the Ghanaian context, has emphasized the feasibility of implementing Islamic banking within a relatively short time frame.

Dr. Addison highlighted the necessity of specific shariah-compliant governance arrangements, liquidity management, and risk management tools for Islamic Banking, indicating that Ghana currently lacks these frameworks.

However, IFRIG believes that with the right support and commitment from regulatory authorities, Ghana can expedite the development and implementation of these frameworks.

"At IFRIG, we recognize the importance of robust regulatory frameworks to ensure the integrity and stability of Islamic financial institutions. However, we also believe that Ghana has the capacity to develop and implement these frameworks within a reasonable timeframe.

"Drawing on the experiences of other West African countries with similar legal systems, we can leverage existing models to streamline the process and continue improving," a senior IFRIG official said.

According to IFRIG, despite the complexities involved in developing regulatory frameworks for Islamic Banking, they remain committed to facilitating this process.

"We have already initiated work on a proposed framework and are prepared to collaborate with regulatory authorities to expedite its development and implementation. With the necessary support and collaboration, we are confident that Ghana can establish a conducive environment for Islamic banking within the next four to six months," Shaibu Ali, Director of IFRIG stated.

Potential benefits of Islamic banking for Ghana cannot be understated

Islamic finance offers a unique opportunity to promote financial inclusion, stimulate economic growth, and foster ethical and responsible financial practices.

By integrating Islamic banking into the financial landscape as a complement, Ghana can unlock new avenues for economic development and create a more inclusive financial ecosystem for all its citizens.

While the challenges of implementing Islamic banking in Ghana are significant, they are not insurmountable.

With the right support, collaboration, and commitment, Ghana can establish a robust regulatory framework for Islamic banking within a relatively short time frame.

IFRIG stands ready to support this process and looks forward to working with all stakeholders to realize the full potential of Islamic finance in Ghana.