BoG Eyes Sukuk Bonds to Unlock New Funding for Ghana’s Development
Ghana could soon join the growing list of African countries turning to Sukuk bonds, which are Sharia-compliant financing instruments to mobilise much-needed capital for infrastructure and development projects.
Speaking at a stakeholder engagement with members of the clergy in Accra, Bank of Ghana Governor Dr. Johnson Asiama highlighted Sukuk as a core component of the country’s planned Non-Interest Banking and Finance (NIBF) framework. Unlike conventional bonds, Sukuk link returns to tangible assets rather than interest payments, making them attractive to investors seeking ethical, asset-backed financial products.
Dr. Asiama said Sukuk could offer Ghana an innovative way to bridge fiscal gaps without overburdening the economy with interest-based debt. Funds raised through Sukuk can be channelled into general government financing, corporate working capital, and even Tier I and II capital under the Basel III framework.
Across Africa, Sukuk have proven their worth. South Africa successfully raised US$500 million through its debut Sukuk issuance in 2014, which was oversubscribed fourfold, and followed up with a US$1.1 billion four-tranche Sukuk in 2023. Nigeria’s Sovereign Sukuk programme has mobilised US$2.37 billion since 2017, funding over 4,100 kilometres of roads and nine major bridges.
“As Ghana charts its path towards inclusive and sustainable economic transformation, the role of non-interest finance cannot be overstated,” Dr. Asiama said. “Sukuk, with their foundation in ethical principles, tangible asset-backing, and social justice, provide a credible alternative for financing our development aspirations.”
The Governor described NIBF as a chance to widen access to finance, deepen investment diversification, and meet the needs of faith-based communities traditionally excluded from interest-based banking. He called on the clergy to help demystify non-interest banking, raise awareness, and foster collective ownership of the framework.
BoG plans further stakeholder engagements as it works to finalise the regulatory and institutional groundwork for NIBF in Ghana, signalling what could be a new chapter in the country’s financing strategy.
