Time for Ghana to have Islamic banks – Entrepreneur

Alhaji Munir Abdallah Mai-Litafi, a Ghanaian entrepreneur has suggested the establishment of Islamic banks in Ghana to facilitate the growth and development of business.

He expressed concern about the lack of, and access to business finance from the traditional banks and their negative influence on businesses.

“The businesses are there; but there is no capital to turn things around. Access to capital is the problem. When you go to the banks, they behave as if they are going to give out the money but at the end they do not.

When they give you the money, the interest is another story“, Alhaji Mai –Litafi, said.

Speaking to the Ghana News Agency (GNA) in an interview on business challenges in Ghana, Alhaji Mai-Litafi, who is also the Chief Executive Officer (CEO) of Hulana Enterprise in Accra, minced no words that the establishment of Islamic banks would be a major relief in accessing credit for business finance.

He described capital as “the most difficult aspect of doing business in Ghana”, explaining that, money is needed to buy machines and equipment, pay for rentals, buy inputs and pay staff.

The CEO, also an adherent of the Islamic faith, said, “as a Muslim, whatever happens, we come back to God. “Capital goes back to God. God gives the capital, and does not charge interest.”

He said his suggestion for the establishment of Islamic banks is based on fact that the Koran prohibits the giving or taking loans with interest, but encourages partnerships that inure to the benefit of the parties involved.

Alhaji Mai-Litafi urged business people to put absolute trust in God, and be content with whatever resources they have rather than taking loans with cutthroat interest rates.

“You know, the high interest rates are killing businesses. Besides, it is sin (haram) in Islam to charge interest on loans,” the CEO said.

He argued that today in Europe, Islamic banks, which are like partnerships, are the fastest growing banks, because they are interest free.

Alhaji Mai-Litafi made no better case for micro finance companies, and said their interests put stress on their customers.

“When they give the loans and you have not been able to recoup your investment and interest, and lock your office. That puts stress on you. A lot of business people are dying because of stress, “Alhaji Mai-Litafi said.

Alhaji Mai-Litafi observed that a lot of things have gone wrong in businesses, hence the many crises in business, and he consequently implored business people to improve upon their personal relationship with God and fellow humans.