Ghana reached a $3 billion loan deal with the International Monetary Fund (IMF) last year. Now, it will become the first African country to reduce public corruption by adopting blockchain technology for all government processes.
“We will adopt blockchain technology to ensure that all data and transactions in the government space are transparent and irrefutable,” Vice President Mahamudu Bawumia told the Commonwealth Regional Conference on May 14 and the Annual General Meeting of Anti-Corruption Leaders. in Africa.
Ghana’s previous scheme, Revenue Assurance and Compliance Enforcement, was designed to detect and eliminate revenue leakages in areas such as oil supply, gold and mineral exports, port operations, transit goods, warehousing, border controls and the free zone businesses.
“Applying blockchain technology to secure government revenue involves creating a transparent, secure and efficient system to manage and track revenue and expenditure,” says Arthur Augustus, senior software engineer at Lagos-based fintech Parthian Partners Limited .
By leveraging blockchain’s immutability, decentralization and transparency, African governments can significantly reduce fraud, improve tax compliance and ensure efficient use of public resources. This, in turn, will lead to better governance and increased public confidence, according to Augustus.
“Government procurement processes can be managed using smart contracts, ensuring that contracts are awarded and performed based on pre-defined criteria. Also, blockchain can be used to track the supply chain of goods and services procured by the government, ensuring that there are no misreports in the supply chain,” he said.
These automated contracts ensure that all parties compete fairly and that the most suitable supplier is selected, while also enabling proper tracking along the supply chain. They also ensure that goods and services are delivered as specified and prevent fraud and misreporting. According to Augustus, governments need to prepare for the downsides of this innovation, including data privacy issues, environmental impact and resistance to change. He added that they can mitigate these challenges by investing in technical expertise, creating strong legal frameworks and ensuring that the transition to blockchain is inclusive and sustainable.