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Ghana adopts Blockchain to stem fraud
Ghana reached a $3 billion loan deal with the International Monetary Fund (IMF) last year. It will now become the first African country to reduce public corruption by adopting blockchain technology for all government procedures.
“We will adopt blockchain technology to ensure that all data and transactions in government space are transparent and tamper-proof,” Vice President Mahamudu Bawumia said at the May 14 Commonwealth Regional Conference and Annual General Meeting of Heads of Anti-Corruption Agencies . In Africa.
Ghana’s previous plan, Revenue Assurance and Compliance Enforcement, was designed to identify and eliminate revenue losses in areas such as oil bunkering, gold and mineral exports, port operations, goods in transit, warehouses, border controls and operations in free zones.
“Implementing blockchain technology to safeguard government revenue involves creating a transparent, secure and efficient system for managing and tracking revenue and expenditure,” says Arthur Augustus, senior software engineer at fintech provider Parthian Partners Limited based in Lagos.
By leveraging the immutability, decentralization and transparency of blockchain, African governments can significantly reduce fraud, improve tax compliance and ensure efficient use of public funds. This, in turn, will lead to better governance and greater public trust, according to Augustus.
“Public procurement processes can be managed using smart contracts, ensuring that contracts are awarded and executed based on predefined criteria. Furthermore, blockchain can be used to trace the supply chain of goods and services provided by the government, ensuring that there are no misdeclarations in the supply chain,” she said.
These automated contracts ensure that all parties compete fairly and that the most suitable supplier is selected, while allowing for proper monitoring along the supply chain. They also ensure that goods and services are supplied as specified and prevent fraud and misrepresentation. According to Augustus, governments must prepare for the downsides of this innovation, including data privacy concerns, environmental effects and resistance to change. He added that they can mitigate these challenges by investing in technical expertise, creating strong legal frameworks and ensuring the transition to blockchain is inclusive and sustainable.