The Bank of Ghana (BoG) has inaugurated the Non-Interest Financial Advisory Council (NIFAC), a move aimed at supporting the development of a regulated non-interest finance market in Ghana.
Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, said the council would provide the governance structure needed to support the effective regulation and supervision of non-interest banking institutions.
He made the remarks on August 18, 2026, at the inauguration of the council at the Bank of Ghana’s headquarters in Accra.
The establishment of NIFAC marks a new phase in Ghana’s efforts to move non-interest finance from a legal framework into a functioning part of the country’s financial system.
Dr Asiama stressed that non-interest finance should not be viewed as “free finance” but rather as an alternative financial model based on structures such as trade, leasing, partnerships and asset-backed transactions.
The model could provide additional options for businesses and individuals who may prefer financial products structured differently from conventional interest-based lending.
For instance, traders could use non-interest structures to finance inventory, manufacturers could access funding for equipment, while households could benefit from financial products designed around asset-backed or partnership arrangements.
The legal foundation for non-interest banking is already provided under Section 18(1)(r) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).
However, the Bank of Ghana recognised that legislation alone would not be enough to create a functioning market. In 2025, the central bank established a dedicated team to develop the regulatory and supervisory framework for the sector.
That process led to the publication of the Guideline for the Regulation and Supervision of Non-Interest Banking in Ghana in January 2026.
Under the guideline, existing financial institutions can offer non-interest products through dedicated windows, while institutions interested in operating fully fledged non-interest banks can also seek licensing and come under the supervision of the Bank of Ghana.
The central bank said it would continue to draw on international standards and experience, including knowledge gained through its membership of the Islamic Financial Services Board.
This will be important as non-interest finance presents structures that differ from conventional banking while still carrying familiar risks relating to capital, liquidity, governance, disclosure and consumer protection.
According to Dr Asiama, interest in non-interest finance has grown among both financial institutions and members of the public since the publication of the guideline.
NIFAC is expected to provide guidance on issues that may arise as institutions begin developing products and entering the market. The council will advise the Bank of Ghana at the national level and help promote consistency in the interpretation and application of the regulatory framework.
Individual non-interest banking institutions will also be required to establish their own advisory committees to guide their boards and management.
Beyond banking, NIFAC will provide advisory support to the Securities and Exchange Commission and the National Insurance Commission as Ghana works towards developing a wider non-interest finance ecosystem.
This could eventually extend non-interest financial products beyond banking into areas such as investment, insurance and capital markets.
The success of the sector, however, will depend largely on how well the new framework is implemented.
Customers will need clear information about how products work, the costs involved and the risks they carry. Financial institutions will also have to maintain strong governance and transparent practices, while regulators will need to ensure that innovation does not come at the expense of financial stability and consumer protection.
The inauguration of NIFAC therefore represents more than the creation of another advisory body. It signals Ghana’s move from putting the legal and regulatory foundations for non-interest finance in place to building the institutions needed to support an actual market.
The next challenge will be turning the framework into viable products and services that attract customers and financial institutions.
