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The Islamic Finance Research Institute Ghana (IFRIG) has called on religious groups of Abrahamic faiths to collaborate in introducing ethical, non-interest financing in Ghana.
The institute emphasized that adopting non-interest financing was essential for creating a fairer and more compassionate financial system that fosters the social and economic well-being of Ghanaian communities.
“Now, more than ever, it is time for these faith communities to unite in embracing non-interest financing as a model that not only serves economic needs but upholds moral principles enshrined in their sacred texts,” said Dr. Shaibu Ali, Director General of IFRIG, in an interview with the Ghana News Agency.
Dr. Ali explained that the three Abrahamic religions—Judaism, Christianity, and Islam—share fundamental values of justice, fairness, and the prohibition of usury.
He highlighted how these common principles reflect a deep-seated belief that interest-based financial systems lead to inequality and exploitation, particularly impacting the poor.
Dr. Ali urged religious leaders to take the lead in initiating dialogues with stakeholders, including policymakers and financial institutions, to promote a non-interest financial model that aligned with religious principles.
He stressed that such a model would create a more inclusive and just financial system, allowing businesses and governments to grow without the burden of compounding interest.
Dr. Ali pointed out that both the Old Testament and the Qur’an clearly prohibit charging interest, reinforcing the shared ethical stance among the three Abrahamic faiths.
He quoted from the Deuteronomy 23:19-20, which says, “You shall not charge interest on loans to your brother,” emphasizing the biblical call for fair and compassionate lending practices.
Dr. Ali also referenced the Qur’an, which explicitly forbids riba (interest), advocating for trade and mutual cooperation instead.
In addition, he cited the Jewish Torah (Exodus 22:25), which states, “If you lend money to one of my people among you who is needy, do not be like a moneylender; charge him no interest.”
Dr. Ali observed that many developing countries, including Ghana, could have avoided their current debt crises if they had not relied on high-interest loans, which often result in defaults and economic stagnation.
He pointed out that such interest-based systems frequently exacerbate financial burdens on nations, particularly those already struggling with poverty and underdevelopment.
Dr. Ali advocated for the integration of ethical non-interest financing principles into contemporary economic systems, emphasizing that such an approach would offer practical financial solutions while fostering a more just and inclusive economy.
He highlighted that this model would benefit both individuals and nations, promoting growth without exploitation or harm.
“It offers financial products like sukuk (Islamic bonds) and musharakah (joint ventures), which are based on ethical, asset-backed investments.
“These systems do not rely on generating profit through interest but through genuine trade and partnerships, ensuring that both lender and borrower share the risks and rewards of their investments,” he said.
Source: GNA
