Title:
Faith, Finance, and Inclusion: The Need and Value of Islamic Banking in Ghana’s Evolving Economy

Authors:
Ogochukwu C. Nweke, Bashiru S. Zibo, Emmanuel K. A. Appiah, Ghana

Abstract:

This article explores the role that Islamic banking can play in Ghana's more inclusive and ethical financial future. It argues that while the conventional banking system has fostered growth, it still fails to bring a sizeable segment of the population especially in the rural and the Northern parts of the country under its ambit. Islamic banking, based on the principles of fairness, risk-sharing, and transactional protections that secure the value of transactions in their asset base, is a viable alternative to conventional banking because it unifies and harmonises finance with social responsibility. Drawing on international experiences in countries ranging from Malaysia to Nigeria to the United Kingdom, the article shows that Islamic finance is not limited to religious practise but is a more comprehensive system capable of contributing to stability, transparency and sustainable development. For Ghana, the potential benefits include broadened financial inclusion and support of small and medium sized enterprises, attracting foreign investment, and fomenting the economic diversification. At the same time, the study identifies challenges in the areas of regulation, public awareness, and capacity that will have to be tackled to ensure successful implementation. The article concludes that introducing Islamic banking in Ghana is not simply anything about offering another financial product but re-imagining finance as a tool for achieving equity, resilience and social progress.

DOI: https://doi.org/10.51505/IJEBMR.2025.91121