Director General Message

In the Name of Allah, the Merciful, the Compassionate May Peace Be Upon You All

                                                                    


Islamic Banking, Finance, and Insurance industry is now one of the fastest-growing financial industry in our world today.

The industry consists of numerous financial institutions managing an aggregate worth of $2.4 (2019) and following a recent decade-average growth of around 6.6%, S&P Global’s predictions suggest that due to post-COVID-19 challenges in Islamic financial markets global Islamic finance market will show lower single digit growth in 2020-2021. Despite these global challenge, Islamic finance remains one of the fastest growing financial sub-sectors which has been evolving and expanding both financially and geographically due to its provision of ethical financial solution to mankind.

Contrarily to Islamic finance is conventional banking, and finance which has succeeded in creating debt which in turn declared a war on the economies of mankind. For example developing countries annual debt payment could be used to save the lives of 21Million children in 3yrs and provide 90m girls with basic education’-(UNDP Human Dev Report). Despite this, poor nations are told that if they borrow and invest wisely, they will be able to repay their debts and more, but in 50yrs and the debt has just kept growing. The physical consequences of debt through basic indicators of well being shows that 1995, industrialized countries child mortality was 16, South Asia was 109; sub Saharan Africa was 169 (UNDP Human Dev Report 1998). In Tanzania debt repayment was as much as six times spending on healthcare. In Uganda, annual healthcare spending was $2 per person whilst debt repayment was$11.5 per person(Jubilee 2000).

The multilateral banks promote borrow, invest, export, and repay development model, yet, not one developing country has gone into debt with the IMF or the World Bank and subsequently paid it off. The typical response to budget and trade deficits in the developing world is an austerity program, yet the world’s biggest debtor and holder of biggest trade deficit does not follow this advice. They argue that debt finance is acceptable if projects are self-liquidating. If so, why don’t they advance finance to developing countries on a profit sharing basis (principles Islamic commercial law) instead of charging interest?

The solution to the creation of debt from charging interest which in turn declares financial war on our economies lies with implementation of Islamic economic system. The approach of this system is based on an entirely different philosophy from the profit maximization of the capitalist system.

Islamic financial system has rightfully gained conspicuous interest globally due to its perceived resilience amidst the financial turbulence that has adversely affected the conventional banking, and fiance sectors. Therefore, GIIBIC has taken the decision to play a leading role in the developmental process of this ethical industry in Ghana, and the region, as well as globally.

GIIBIC believes that the Islamic Finance industry system is the key unique solution for building a viable economy, an alternative to conventional one which has compiled up debt, which can neither be paid by us, or our grand children . An Islamic financial system is based on sharing profit along with risk thereby laying the ground for financial freedom in society. On Economic side, it distributes income and wealth to more dynamic recipients which creates economic well-being, full employment, optimum rate of growth, and Socioeconomic justice. For equitable distribution of wealth , while banning lending creates stability in the value of money. Banning of interest instigating a banking and finance system based on partnership between labor and capital.

GIIBIC believes that Islamic banking and finance will bring better integration of the real and financial sectors of our economy. With this IB principles SSB supervision will bring better business ethics, while ensuring that banks only entertain economically viable financing requests contrary to conventional banks being lenders. Islamic banks will provide financing by coming in as traders and sharing profits instead of taking fixed return (interest). Islamic banks will stay away from financing activities and industries that harm, individual and society. Islamic economic system creates greater economic stability, for it is well known in traditional finance literature that interest-based is a menace of economic instability when compared with equity-based finance.

I am honored and pleased to welcome you all to GIIBIC to contribute with us in this viable economic development.

Director General