ACCA Urges Enhanced Governance and Assurance for Ghana’s 2026 Non-Interest Banking Transition

Introduction

As Ghana gears up for its 2026 non-interest banking transition, the Association of Chartered Certified Accountants (ACCA) is at the forefront, advocating for robust governance, reporting, and assurance standards. This push comes amid preparations by the Bank of Ghana (BoG) to activate a comprehensive regulatory framework for non-interest banking in Ghana, also known as Sharia-compliant or Islamic banking principles adapted locally. During the ACCA Business Leaders’ Forum on Sustainability & Non-Interest Banking in Accra, ACCA Africa Director Jamil Ampomah emphasized that transparent disclosures are essential for building investor and depositor confidence.

Non-interest banking prohibits interest (riba) and focuses on asset-backed financing, profit-sharing models, and ethical investments, aiming to boost financial inclusion, introduce innovative products, and support sectors like agriculture and infrastructure. This article explores ACCA’s recommendations, BoG’s plans, and the broader implications for Ghana’s financial sector, providing a pedagogical guide for professionals, banks, and stakeholders.

Analysis

The drive for enhanced governance and assurance in Ghana’s non-interest banking transition stems from the need to mitigate risks in a nascent market. ACCA highlights that reliable reporting is foundational for growth, drawing parallels with mature markets. Jamil Ampomah noted that institutions must govern, report, and assure operations transparently to attract commitments from traders and depositors.

Role of Reporting and Assurance

Effective reporting involves clear disclosures on asset-backed transactions, profit-sharing mechanisms, and risk management. Assurance, provided by qualified accountants, verifies these disclosures, fostering trust. Without these, the sector risks slow adoption, as weak practices could erode credibility.

Bank of Ghana’s Regulatory Framework

BoG plans to enable conventional banks to operate non-interest windows while licensing standalone non-interest banks starting next year. Professor John Gatsi, Advisor to the BoG Governor, confirmed the framework is complete and awaiting final approval. It mandates staff training in risk, compliance, treasury, and internal audit to ensure operational readiness.

Integration with Sustainability

BoG will align non-interest banking with its Sustainable Banking Principles, addressing environmental, social, and governance (ESG) risks. This positions the framework to support resilient growth in productive sectors.

Summary

In summary, ACCA leads the call for stronger governance and assurance to support Ghana’s 2026 non-interest banking Ghana rollout. Key speakers at the Accra forum—Jamil Ampomah and Prof. John Gatsi—stressed training, transparent reporting, and regulatory alignment for success. The transition promises financial inclusion, job creation, and ethical finance, but hinges on building capacity and trust through proven practices.

Key Points

Practical Advice

For banks and financial institutions preparing for the 2026 non-interest banking transition, practical steps include:

Build Internal Capacity

Invest in training programs for risk management, compliance, treasury operations, and internal auditing. Collaborate with professional bodies like ACCA and academic institutions to embed non-interest banking principles into curricula.

Enhance Reporting Frameworks

Develop transparent disclosure templates for asset-backed financing, profit-sharing models (e.g., Mudarabah, Musharakah), and risk mechanisms. Engage ACCA-qualified professionals for assurance services to validate reports.

Adopt Technology and Products

Introduce Sharia-compliant products like Sukuk bonds or Ijarah leasing. Use digital platforms for ethical branding and customer education to promote financial inclusion.

Leverage Partnerships

Partner with BoG-approved experts in Sharia governance. Early movers should pilot non-interest windows to test operations and gather data for refinements.

ACCA recommends viewing this as part of broader responsible finance shifts, not isolated products, to capitalize on rising demand for transparent, ethical options.

Points of Caution

While promising, the transition carries risks if not managed properly:

• Vulnerable Reporting Delays Maturity: Jamil Ampomah warned that inconsistent disclosures could hinder sector growth, deterring investors.
• Staff Readiness Gaps: Prof. Gatsi emphasized strengthening internal structures; untrained personnel may mishandle products and risks.
• Risk Management Shortfalls: Without robust governance, asset-backed models could expose institutions to liquidity or compliance issues.
• Market Credibility: Ghana must emulate strict practices from established markets to build quick trust.

Comparison

Ghana’s approach mirrors successful Islamic banking implementations in cross-border markets like Malaysia and Pakistan, where growth accelerated due to stringent disclosure and assurance.

Malaysia and Pakistan Benchmarks

In Malaysia, Islamic banking assets exceed 40% of total banking, supported by mandatory Sharia audits and detailed profit-sharing reports. Pakistan’s framework mandates asset-backing ratios and risk-weighted disclosures, leading to rapid expansion post-2001 reforms.

Ampomah urged Ghana to follow this path for swift credibility, adapting local contexts like agriculture-focused financing.

Legal Implications

The BoG’s non-interest banking framework carries regulatory obligations with legal weight. Institutions must comply with licensing requirements for non-interest windows or full banks, including staff certification and product approvals. Non-compliance risks penalties under Ghana’s Banking Act, 2004 (Act 673), as amended.

Integration with Sustainable Banking Principles implies adherence to ESG reporting, potentially enforceable via BoG directives. Sharia governance boards must oversee contracts, ensuring they avoid riba and gharar (uncertainty), with disputes resolvable through arbitration per Islamic principles or Ghanaian courts. Training mandates are advisory but tied to operational approvals, making them de facto legal prerequisites for rollout.

Conclusion

ACCA’s leadership in calling for enhanced governance and assurance positions Ghana’s non-interest banking Ghana transition for sustainable success. By prioritizing transparent reporting, staff training, and BoG-aligned regulations, the sector can achieve financial inclusion, job creation, and ethical growth. Stakeholders should act now—early preparation yields competitive advantages in this ethical finance era. As Ampomah stated, “Non-interest banking can only grow when reporting is reliable and trusted.”

FAQ