In the wake of Ghana’s recent economic turbulence, marked by a domestic debt exchange programme, rising cost of credit, and subdued confidence in financial institutions, calls for reform have grown louder.
Yet, beneath the noise of restructuring efforts and policy debates, a quiet revolution is underway: the growing public appetite for an alternative, interest-free banking system that aligns with ethical finance principles and offers potential relief to individuals and businesses across the country. A new nationwide study led by the Islamic Finance Research Institute of Ghana (IFRIG), under the direction of its Director General, has now quantified this appetite with remarkable clarity, and it is louder than many expected.
Scope of the research
The research, spanning all sixteen (16) regions of Ghana, sampled 6,000 individuals, with 5,778 valid responses after data cleaning. The study presents a nationally representative view of public sentiment toward the introduction of non-interest banking and finance, a system grounded in ethical investing, partnership-based financing, and profit-and-loss sharing mechanisms.
Contrary to common assumptions, the results confirm that demand for this form of banking extends beyond religious affiliation or ideology, it is embraced by a broad cross-section of Ghanaians, including Christians, Muslims, and those of other or no religious backgrounds.
Of the respondents, 62.1 percent were male and 37.9 percent were female. The largest age cohort was between 26 and 39 years, accounting for 48.8 percent, followed by respondents aged 40 years and above at 31.8 percent, and those aged 18 to 25 forming 19.4 percent.
Educationally, 54.5 percent were university graduates, 29.4 percent were current undergraduate students, and 6.8 percent held diplomas. Only 6 percent had a high school education or below. This data reveals a highly literate and economically active group engaged in the financial ecosystem, precisely the demographic whose preferences should inform national financial policy.
On religious affiliation, 62.7 percent of the sample identified as Muslim and 35.9 percent as Christian, with traditional believers and others constituting the remainder. Significantly, Christians who participated in the study showed strong support for the concept of non-interest banking, indicating the widespread appeal of ethical financial products not tied to any one faith tradition. This is particularly important in Ghana’s pluralistic society, where financial tools must cater to citizens regardless of creed.
Main finding
The survey results show that 88.7 percent of respondents currently use conventional banks. However, 98.4 percent expressed a willingness to patronize non-interest financial services if available, and 95.6 percent believe such services can survive in Ghana’s competitive financial landscape. Further, 96 percent affirm that this model has a future in the country. These are not fringe numbers, they represent a national consensus for diversification in banking choices.
Awareness of non-interest banking stood at 71.2 percent. However, only 27.9 percent said their awareness was high, with 38 percent indicating moderate knowledge, and 34.1 percent rating their awareness as low. The internet was the top source of information, accounting for 47.8 percent of responses, followed by friends and peers at 21.6 percent. Television, radio, and newspapers made up smaller portions, underscoring the need for targeted awareness campaigns using mass media to broaden understanding.
On the timeline of awareness, 34 percent had been aware of the concept for over a year, 18.5 percent for six months to one year, 20.4 percent for three to six months, 17.2 percent for a month to three months, and 10 percent within the last month. This distribution demonstrates increasing momentum, as more people learn about ethical banking models in real time.
Perhaps most telling is the 90.7 percent of respondents who correctly understood that non-interest banking does not pay or charge interest, indicating a broad foundational understanding of the model’s key features. This reflects the success of grassroots awareness and the effectiveness of existing informal channels.
Asked about the economic value of non-interest banking, 62 percent of respondents strongly believed it would improve competition in Ghana’s banking sector. Similarly, 51.5 percent agreed it would promote financial inclusion by extending services to those currently marginalized by the high cost of borrowing. A significant 59 percent strongly felt it would help reduce Ghana’s high interest rates, while 53 percent believed it would support small businesses and farmers, and 43.1 percent affirmed it would improve loan repayment rates. These perspectives signal deep public confidence in the potential of this model to address persistent credit and liquidity challenges.
The research also explored perceived challenges. Religious discrimination topped the list at 35 percent, followed by regulatory gaps (28.7 percent), lack of public awareness (16.9 percent), legal constraints (7.9 percent), and market resistance (10 percent). Despite these concerns, over 54.9 percent of respondents strongly disagreed with the notion that non-interest banking is only for Muslims, and 49.2 percent strongly rejected the belief that it cannot succeed in a country with a Muslim minority. This resounding pushback against misconceptions should serve as reassurance to regulators, legislators, and market participants.
On implementation strategies, 30.4 percent of respondents said the system could begin as a dedicated “window” within existing banks, with 22.4 percent strongly agreeing. This phased approach offers a feasible entry point for commercial banks already operating in Ghana, especially given that it reduces upfront capital expenditure and regulatory friction.
IFRIG’s call to BoG and other key stakeholders
In light of these findings, IFRIG is calling on the Bank of Ghana, the Ministry of Finance, and other regulators to expedite the release of a clear regulatory framework for non-interest financial services. This framework should provide robust licensing guidelines, governance standards, compliance mechanisms, and capital adequacy rules. The Institute further recommends the rollout of coordinated public education campaigns to dispel myths, raise awareness, and build trust in the model.
IFRIG also urges the government to explore interest-free financing models for public infrastructure projects, especially in sectors such as housing, education, and healthcare. Non-Interest bonds and project-based financing structures could reduce Ghana’s reliance on interest-bearing debt instruments and diversify its funding base.
Additionally, tertiary institutions training future bankers, lawyers, and economists should incorporate courses on ethical and non-interest finance into their curricula. Professional bodies, including the Islamic Finance Professional Institute (IFPI), Institute of Chartered Accountants Ghana (ICAG), the Ghana Bar Association, and the Chartered Institute of Bankers, are also encouraged to include modules on Non-Interest banking in continuing professional development programs.
Commercial banks, microfinance institutions, and fintech companies are urged to develop innovative ethical financial products. These offerings should be accessible not only to urban professionals but also to underserved groups including rural traders, artisans, and farmers, many of whom currently remain outside the formal financial system due to interest-based credit constraints.
Conclusion
The IFRIG national study offers compelling evidence that the Ghanaian public is not just ready for ethical, interest-free banking, it is demanding it. The support cuts across age, religion, profession, and geography.
For regulators, this is an opportunity to expand financial inclusion, restore public trust in the financial system, and provide new tools for growth. For investors and banks, this is a growing market ripe for innovation.
The data is clear: the future of banking in Ghana must be diverse, inclusive, and aligned with the values of its people. The time for policymakers to act is now.
Source: IFRIG