BoG must use Islamic banking to promote financial inclusion – Dubai Chamber

The Head of Dubai Chamber-Ghana Office, Cyril Darkwa, is encouraging the Bank of Ghana (BoG) to see Islamic banking as a way to promote financial inclusion in the country. Mr. Darkwa stated that this type of finance is being utilised by banks, companies and start-ups to tap into the large unbanked population in Africa. An executive member of the Ghana Muslim (GM) Ambassadors, Dr. Abubakar Muhammad Marzuq, said Islamic banking will be of great benefit to the country as a whole. He said although regulations are necessary to attract investors, awareness is more important to ensure a vibrant Islamic banking regime. He therefore called for effective collaboration between the Islamic banking industry and the media in order to create awareness.

NIC to introduce Islamic based insurance program

In Ghana the National Insurance Commission (NIC) may soon introduce Islamic based insurance known as Takaful insurance. The Commissioner of Insurance Lydia Lariba Bawa said in places where the Muslim population is higher like Gambia and Nigeria, Takaful insurance is gaining grounds. There is a Muslim community in Ghana that can be adressed by introducing the Takaful insurance. This move will contribute to the Commission’s effort to increase insurance penetration in the country.

First Islamic Investment Fund launched in Kumasi

An Islamic Investment Fund has been launched in Kumasi with the objective of reviving economic activities within Muslim communities. The Shari’a complaint financial system is to mobilize funds from the Muslim Ummah for development, whilst creating jobs for the teeming youth in need of jobs. The Fund is initiated by the Ahlussunna WalJama’a Ashanti Regional Imam (ASWAJ) to offer “ethical investment” tools to investors seeking to invest in profitable “halal” business ventures which have minimal risk but good potential for growth. A Gh100,000 is to be raised in the initial public offering of 200 shares at a share value of Gh500 per share.

Promising future for Islamic banking in Ghana

The opening of the Islamic financial services (IFS) sector in Ghana is expected to create new financing and lending opportunities in the coming years, with sharia-compliant banking offering particular potential in the retail and small and medium-sized enterprise segments. In Ghana there is currently just one sharia-compliant financial institution – Ghana Islamic Microfinance, which began as an NGO – though there is significant scope for growth. The Bank of Ghana (BoG) may be preparing to issue the country’s first licence for a sharia-compliant bank in late 2015 or early 2016, with an accompanying reform to the regulatory framework also expected to be implemented.

Ghanaians to Enjoy Interest Free Loans

The Bank of Ghana is in the process of licensing Islamic Bank, which is expected to provide interest free loans to its customers across the country. The Central Bank Governor, Dr Henry Kofi Wampah, told journalists at a press conference in Accra that the Banking Supervision Department of his outfit is working assiduously to issue new banking licenses to Islamic Bank, as well as the Ghana Armed Forces Bank by the close of the year. Research from Lotus Capital Limited in Nigeria shows there is a growing appetite for Islamic finance as approximately 30 per cent of the Muslim population around the world would be interested in Islamic finance. Nevertheless, the operations of Islamic banks give rise to a unique set of risks, in addition to the standard risks associated with banking activities.

Islamic Development Bank to Support Ghana’s Economic Agenda

The president of the Islamic Development Bank (IDB) Group has urged the government of Ghana to join the Organization of the Islamic Cooperation (OIC) countries for the country to benefit from a number of development assistance being offered by the Group. Ghana and Liberia are the only two countries in West Africa who are still not members of the OIC. By becoming a member country, Ghana will benefit immensely from development assistance especially in the areas of infrastructure development. Although not a member country, the IDB has supported Ghana with more than US$5.5 million in grants for the completion of more than 16 different projects across the country.

Ghana Islamic Microfinance wins award

The Ghana Islamic Microfinance, the first Shariah-compliant financial institution in Ghana, is to receive the Women’s For Development Award 2014 from the Islamic Development Bank. The award will be presented to the financial institution at an event of the Board of Directors of the Islamic Development Bank, taking place in Jeddah, Saudi Arabia from June 22 – June 26. Ms Suwaiba Mohammed Amin, the Programmes Manager of Ghana Islamic Micro-finance said the aim of the financial institution is not to bring Shariah law to Ghana but to use its principles to promote ethical financing and fight against the exploitative loans currently going on in the country.

Ghana and Islamic Development Bank Join African Legal Facility

Ghana and the Islamic Development Bank (IDB) have joined the African Legal Support Facility (ALSF). Ghana is now the 48th country to join the facility and the IDB the sixth international organization to become a member. The membership of the IDB shall be followed by the approval of an IDB financial contribution to the Facility of up to US$ 1 million, according to ALSF Director Stephen Karangizi. An independent body hosted by the African Development Bank (AfDB), the ALSF supports the AfDB's Regional Member Countries in the negotiation of complex commercial transactions and litigation brought against them by vulture funds. It also provides capacity building. The ALSF's goal is to ensure fair and balanced negotiations.

The Agricultural Development Bank (ADB): Islamic banking services coming to T&T

The Agricultural Development Bank (ADB) is hoping to introduce Islamic banking services for its Muslim and non-Muslim clients within one year. In order to educate the public about Islamic banking methods and strategies, ADB sought the help of experts from Deloitte and Touche. Jail Leladhasingh, corporate manager, business development at ADB, said the ADB is exploring the possibility of setting up the bank to offer this alternative service to farmers.

Don’t grab land, invest in the locals

Multinational corporations and nations buy up land in foreign countries, most of them intending to export the production. Oxfam recently published a report about this phenomenon, called land-grabbing and its problems for the local societies. However, the Oxfam’s study also gives recommendations for a possible solution to the dilemma.

FAO and Germany call for more responsible investments in agriculture

José Graziano da Silva - Director-General of Food and Agriculture Organization - and Ilse Aigner - the German Minister of Food, Agriculture and Consumer Protection - have pointed out the importance of a significant increase in responsible investments in agriculture. Thus the issue of eradicating hunger and feeding a growing world population can be addressed. They further explained that investments in regions with severe rural poverty and hunger are still too low. Efforts should be concentrated on farmers because they play a key role in the rural environment.

BoG to consider Islamic banking in Ghana

The Bank of Ghana (BoG) has indicated that it might consider introducing Islamic finance to Ghana provided that the prospects are positive. There have been arguments among industry players whether or not Islamic banking is a potential solution to the high interest rates challenges for the private sector. According to Dr. Henry Wampah - Acting Governor of the BoG - the bank intends to consider this matter in the very near future.

Noor Dubai Foundation reaches out to visually impaired in Ghana

Noor Dubai Foundation has successfully completed a treatment mobile eye camp in Ghana.
The latest statistics from the Ghana Eye Foundation show that of the 20 million people living in Ghana, 200,000 are blind and over 600,000 people are visually impaired.
During the six days in which the camp lasted in the state of Tamale, thousands of individuals were screened and over 300 were operated.

Islamic micro lenders set up global network

Islamic Microfinance Network (IMFN) has been set up to assemble the international Islamic Microfinance organisations on one platform.
The IMFN head office is in Lahore and its regional offices will be in Ghana, Mauritius and Middle East.
The board members of IMFN are Farida Tariq, Chairperson, Amjad Saqib, Vice Chairman, and Muhammad Zubair Mughal, Chief Executive Officer.

Islamic Microfinance Network instituted in Pakistan

To assemble international Islamic Microfinance organizations under one platform, Islamic Microfinance Network (IMFN) has been established in Lahore – Pakistan. The initial member countries of Islamic Microfinance Network are Iraq, Jordan, Yemen, Ghana, Mauritius and Kazakhstan.
The objective of this network is to provide best methodologies of Islamic microfinance, Shariah guidelines, and lasting relations and manpower to the industry.



Islamic bank is planned in Ghana by the end of 2008

Felix Dela Klutse reported in Daily Guide on 10 April that an Islamic bank is planned in Ghana by the end of the year.

Professor Thomas Kubi is a promoter of the bank and gave an interview to CITY&BUSINESS GUIDE in Accra, Ghana. According to this the bank would be offering corporate banking, housing finance, car finance, retail banking products and other permissible services. The Ministry of Finance and the Bank of Ghana, which is the regulator of the country’s banking industry, had agreed in principle for the setting up of the bank in the country.

He further disclosed that an international Shariah advisory firm, Dar Al Istithmar, in collaboration with his outfit, MCA International Consult, had already prepared a proposal outlining the strategy to introduce Islamic banking to the country.


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