Associate Professor, Prof. John Gatsi, Dean of the University of Cape Coast School of Business Prof. John Gatsi has said the introduction of the Islamic Finance window in Ghana will not eradicate the dominance of the conventional financial system.

He indicated that Islamic finance cannot eradicate public debt but will help make great strides in relation to public infrastructure and projects without debt burden.

Speaking at the 2021 Islamic Finance Conference organized by Islamic Finance Research Institute Ghana(iFRIG), Prof. Gatsi explained that the Public Private Partnership Act, 2020 (Act 1039), provides a fertile investment opportunity for the deployment of Islamic Financial products and to attract the needed investments in the public-private partnership space to deliver public infrastructure projects.

He noted that Islamic bonds normally called ‘Sukuk will serve as alternative funding for specific infrastructure projects.

Prof. Gatsi indicated the value for debt in Ghana is questionable as interest is being paid on loans procured for projects which have been abandoned and projects completed but not in use.

He advised the Bank of Ghana to speed up the process of putting up regulations in place to allow SMEs to benefit from Islamic banking.

He admonished those advocating for Islamic banking not to think that are going to be some interest-free funds abundantly available.

Prof. Gatsi explained that Islamic banks will act like venture capitalists which only select projects when the criteria are met to ensure sustainable entrepreneurship.

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