The Muslim Unmah Development Initiative (MUDI), which is made up of Ghanaian Muslim Scholars and Professionals, is advocating a review of the country's financial laws to incorporate Islamic Financing to pave the way for Muslims in the country.
This, when done, will encourage Halal investment in the country’s financial sector.
According to the group, Halal Investment would enable Muslims in Ghana to attract investment from the Muslim world and also create options different from the conventional system of financing that pertained in the country currently in the area of banking and insurance, among other investments.
Islamic BankHajj School" at the Durra Institute of Arabic Language (DIAL) in Accra last Saturday, the Group Chief Executive Officer, Hajji Abdel-Manan Abdel-Rahman, said it was about time Muslims in Ghana came together to push the Bank of Ghana to establish an Islamic Bank.
"The UK, which has about 2.5 per cent of Muslim population, 21 years ago incorporated Islamic financing law as part of its financing laws by establishing the Islamic Bank.
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South Africa, which has about 1.5 per cent Muslim population, has also incorporated Islamic financing laws.
Let’s assume the Muslim population in Ghana is 10 per cent, then we are more than qualified to also request for Islamic financing laws for Muslims in Ghana", he said.
BoG's Financial Laws
Currently, the BoG has about 11 financial regulations governing the financial sector in Ghana.
These regulations include the Ghana Deposit Protection Act 2016, Act 931; the Payment Systems Act 2003, Act 662; the Borrowers and Lenders Act 2008, Act 773; the Anti-Money Laundering Act 2008, Act 749; the Mortgages Act 1972, NRCD 96, the Anti-Terrorism Act 2008, Act 762; the Income Tax Act 2015, Act 896 (as amended), the Credit Reporting Act 2007, Act 726; the Foreign Exchange Act 2006, Act 723; the Securities Industry Act 2016, Act 929; the Companies Act 1963, and the Act 179 (as amended).
However, Abdel-Rahman was of the view that none of the BoG regulations created an avenue for Halal investment in the country, hence the advocacy by the MUDI Group for Halal Investment in the country.
Halal defines what is permissible under Islamic Law known as "Shariah", and according to the Imam Fund (Invests.com), Halal Investments refer to investing funds or doing transactions that are compliant with the Islamic Sharia law.
This investment is different from the other common forms of investment due to its prohibition of "riba" (interest), and of investment in debt-laden companies that may cause high risk to the investor.
The main benefit of halal investment is that it encourages people to invest in adherence to the Islamic doctrines which advise Muslims against investing in industries that promote alcohol, smoking, lottery, pornography, among others.
Quran chapter 2 (Al Baqara), verse 278-279 state that "O ye who believe! Fear Allah and give up what remains of interest, if you are truly believers.
But if you do it not, then beware of war from Allah and His Messenger; and if you repent, then you shall have your principal; thus you shall not wrong nor shall you be wronged.
The MUDI Group
The MUDI Group is a wholly-owned Muslim organisation created in 2014 by the Centre for Creative Leadership-Africa, with a goal of providing Halal Investments alternatives different from conventional investments channels in banking, finance and Insurance.
The group is also into cashew farming. The group has 25 members with Alhaji Alhassan Haruna, former MD of Metro TV, serving as the Group Chairman.