BoG eyes sukuk bonds to fix Ghana’s $37.9bn infrastructure gap

BoG Governor Dr. Johnson Asiama

The Bank of Ghana is considering adopting sukuk bonds, an Islamic non-interest financial instrument, as a strategic option to close the country's increasing infrastructure deficit.

The move is part of the central bank’s wider efforts to mainstream Non-Interest Banking and Finance (NIBF) into the country’s financial sector, following examples from countries such as Nigeria, South Africa, Malaysia and the UK.

Speaking at a a stakeholder engagement with members of the clergy on Friday, July 25, BoG Governor Dr. Johnson Asiama cited a UN report which reveals that Ghana will require an estimated $37.9 billion annually to meet its infrastructure financing needs and to achieve the Sustainable Development Goals.

Fiscal constraints, according to the BoG Governor, make traditional financing less viable, prompting the search for innovative options.

He described sukuk bonds as an ethical and asset-backed financing alternative that aligns with the country’s inclusive development agenda.

The bonds, which avoid interest (usury), operate on profit-and-loss sharing principles and are already widely used across Africa and globally.

“Sukuk offer an alternative mechanism for mobilising capital for general government financing, infrastructure development, and working capital for corporates. It provides a credible alternative for financing our development aspirations,” Dr. Asiama said.