Accra: Economic experts, banking professionals, and industry associations are urging the Government of Ghana and the Bank of Ghana (BoG) to initiate an aggressive public education campaign to support the successful rollout of non-interest banking in the country. They emphasize the need for such initiatives to address misconceptions and low awareness levels, which pose significant threats to the successful implementation of non-interest banking, as observed in countries like Nigeria, Malaysia, and Indonesia.
According to Ghana News Agency, the calls for public education come at a time when Ghana has received institutional acceptance for non-interest banking. One indigenous bank has already applied for a license, while four other banks are in the process of preparing their applications. Dr. Daniel Anim-Prempeh, Chief Economist at the Public Initiative for Economic Development (PIED), advocates for collaborative efforts led by the government and regulators to ensure that businesses fully understand the terms, conditions, and purpose of non-interest banking.
Dr. Anim-Prempeh highlights the importance of the Central Bank conducting educational outreach for businesses through their associations and chambers, enabling them to appreciate the banking module. He stresses the need for periodic public education to ensure borrowers understand that loans from banks are intended strictly for capital injections into businesses for expansion, and not for personal consumption.
The sustainability of the non-interest banking model, according to Dr. Anim-Prempeh, depends on borrowers' understanding of their repayment obligations, which in turn allows the capital to be recycled for the benefit of other enterprises. He warns that without this discipline, the transformative potential of the model could be undermined before it can take root.
Dr. Issahaku Yakubu, Manager for Business and Commercial Banking at Stanbic Bank Ghana, identifies consumer behavior and public perception as formidable obstacles to the adoption of non-interest banking. He points out low knowledge levels, misconceptions, particularly regarding the religious dimensions of the product, and concerns about Sharia compliance as key barriers. Dr. Yakubu notes that many view non-interest banking as a vehicle for promoting Islam, despite evidence from European countries where the introduction of Islamic financial institutions has not led to religious conversions.
Dr. Yakubu calls on the Government and Central Bank to organize structured consumer education roadshows to highlight the commercially attractive benefits of non-interest banking and shift public conversation towards economic opportunity. The Ghana Association of Banks, through its research, also identifies public awareness as a critical success factor for the implementation of non-interest banking in Ghana. It calls for targeted consumer education, emphasizing collaboration among governments, financial institutions, and Islamic scholars to educate the public about the principles, misconceptions, and benefits of non-interest banking.
The study recommends utilizing traditional media, social media, and other communication platforms to reach the broadest possible audience, especially in areas where the need for clear, credible messaging is acute.