In line with the President Mahama’s Government agenda of building a private sector led economy to engineer massive job creation, rapid and sustainable economic growth and improved living standards, the Bank of Ghana is set to push for deeper financial inclusion with the introduction of Islamic banking.
According to the central bank, operationalisation of Islamic banking is high on its agenda, thus, its appointment of Professor John Gatsi as an Advisor to the Bank to spearhead Islamic banking framework development and implementation.
Although there are pockets of critics of the move by the current government to expand access to finance by business and individuals within the framework of Islamic Banking which is within Ghana’s constitutional rights and financial inclusion objectives – Prof Gatsi has thrown more light on the controversies.
The former Dean of the Business School of University of Cape Coast who is a Christian has urged Ghanaians, regardless of religious faith, to eschew pertinence and religious tones in the public discussions of Islamic banking and finance but rather focus on the varied benefits it brings to all people, irrespective of one’s religious faith.
“Let us focus on the inclusive benefits of trade finance, venture capital, banking, poverty reduction, infrastructure finance and SMEs reengineering to the economy of Ghana”, Prof Gatsi admonished in an interview with the Editor of News Guide Africa. “Non-interest banking and finance is open to Christians, Muslims and other religious groups.”
In a response to some critics of Islamic banking and finance, Prof Gatsi, in a Facebook post expatiated that, “The role of the state in a secular setting is to regulate activities of society. Non- interest banking also called Islamic banking will be regulated and operate within the confines of the constitution and related laws.
“A secular constitution means that all religions are equal, and none can dictate the treatment of another. The state must remain neutral and prevent any one religion from discriminating against another in terms of speech, actions, or treatment. Calling for one religion to rise against another because a financial system with global practice is accepted as complementary to the conventional, is unconstitutional and provocative.
“The practice of the constitution advances religious tolerance, as manifested in various public holidays pertaining to Christianity and Islam. Also, the Exemption Act grants exemptions related to these two religions in Ghana, demonstrating our society’s tolerant organization. Avoid instigating unnecessary religious tension and discrimination.”
He noted some benefits Ghana has received from successful Islamic finance regimes. “Ghana has received various development funding from the Islamic Development Bank even as a non- member over the years and religious discrimination will not help us in Ghana. Misconceptions exist and a lot have been cleared and engagement will continue for further clarification.”
The Facebook post garnered some applause from commentators. Notable among them was a comment from Mohammed Dankasaa Babangida. He wrote, “Prof, I did my project work in Islamic banking and it’s a serious matter. Whilst doing my project, that was when I realized there was, a religious and state sponsored total rejection of Islamic banking operationalization in Ghana. Mr Alhassan Andani, (former CEO of Stanbic Bank) and Dr Nasiru Issayaku (former BoG governor) etc attempted it, and they were nearly lynched through prayers and rebuke. We’re praying for you to do it for Ghana. I think, as you’re trying hard to get it operationalized, if the president does not close his ears and eyes to do it, we will be here in the next 20 years still unimplemented.”
Another commenter, Jonas Vigbedor, wrote “The greed in our societies coupled with monopoly and stigmatisation are some of the problems hindering Ghana’s economy growth. In Malaysia. Islamic Bank and other banks are operating peacefully so why can’t we do the same over here in Ghana. Something must be done quickly on this before it’s too late.”
By Adnan Adams Mohammed
