Is Africa ready to join the blockchain revolution: a feasibility study
DOI:
https://doi.org/10.21814/perspectivas.4634Keywords:
4IR, blockchain technology, e-governance in Africa, public service delivery, feasibility of blockchain adoption in AfricaAbstract
This study assesses the readiness of African governments to adopt blockchain technology, which has gained global recognition since the emergence of bitcoin in 2008. The paper examines whether African governments, given their political, economic, and social challenges, are prepared to embrace the blockchain revolution. The research focuses on a feasibility study of several African countries, including Nigeria, South Africa, and the Central African Republic, using a mixed-methods approach that combines quantitative and qualitative data analysis methods. The author draws on Jennifer Bridges' four interdependent elements of a feasibility study, which include political feasibility, economic feasibility, technical capacities, and legal and regulatory compliance.
The study examines how blockchain technology can provide transparent and reliable systems to combat corruption and mismanagement in government structures, which contribute to poor service delivery in the region. Furthermore, the research evaluates the potential positive and negative outcomes of blockchain implementation on African development, such as an increase in foreign direct investment and productivity, and a reduction in wasteful expenditure.
Downloads
References
Abiola, Oladipo. 2021. “CBN Blames Nigerians as It Reveals Why ENaira App Was Removed from Google Play Store.” Nigeria News. October 28 2021. https://www.naijanews.com/2021/10/28/cbn-blames-nigerians-as-it-reveals-why-enaira-app-was-removed-from-google-play-store/#:~:text=Naija%20News%20recalls%20the%20application.
Adepetun, Adeyemi, and Helen Oji. 2021. “How to Deepen Acceptability, Reliability of E-Naira among Nigerians.” The Guardian Nigeria News. November 14 2021. https://guardian.ng/features/how-to-deepen-acceptability-reliability-of-e-naira-among-nigerians/.
African Development Bank. 2019. “Potential of the Fourth Industrial Revolution in Africa.” Technopolis & Research ICT Africa & Tambourine Innovation Ventures. Abidjan: African Development Bank. https://www.technopolis-group.com/wp-content/uploads/2020/02/Potential-of-the-fourth-industrial-revolution-in-Africa.pdf.
a. “Central African Republic.” African Development Bank. 2022. https://www.afdb.org/en/countries/central-africa/central-african-republic.
b. “South Africa.” African Development Bank. 2022. https://www.afdb.org/en/countries/southern-africa/south-africa.
“African Economic Outlook 2023.” African Development Bank - Building Today, a Better Africa Tomorrow. Abidjan: African Development Bank. https://www.afdb.org/en/documents/african-economic-outlook-2023.
African Union. 2023. “African Union Convention on Cyber Security and Personal Data Protection | African Union.” African Union. April 11, 2023. https://au.int/sites/default/files/treaties/29560-sl AFRICAN_UNION_CONVENTION_ON_CYBER_SECURITY_AND_PERSONAL_DATA_PROTECTION.pdf.
AfricaNews. 2022. “African Software Developers in High Demand Globally.” AfricaNews. March 3 2022. https://www.africanews.com/2022/03/03/african-software-developers-in-high-demand-globally/.
Al Jazeera. 2022. “Bitcoin Is Now Official Currency in Central African Republic.” Al Jazeera. Al Jazeera Media Network. April 27 2022. https://www.aljazeera.com/economy/2022/4/27/bitcoin-is-now-official-currency-in-central-african-republic.
Albrecht-Heider, Christoph. 2020. “A Cash Card with Fingerprint Allows Digital Payments in Rural Areas of Ghana – Even with No Internet.” KfW Stories. KfW. December 7 2020. https://www.kfw.de/stories/kfw/stories/economy/innovation/ghana-e-zwich/.
Anadolu Agency. 2021. “Central African Republic’s President Names Coalition Government.” Anadolu Agency. June 24 2021. https://www.aa.com.tr/en/africa/central-african-republic-s-president-names-coalition-government/2283890.
Atamba, Sheldon. 2021. “Enforce Right to Be Forgotten.” Nation. July 27 2021. https://nation.africa/kenya/blogs-opinion/blogs/enforce-right-to-be-forgotten-3488604.
BAL. 2022. “Blockchain Africa Ladies: About.” Blockchain Africa Ladies. Blockchain Africa Ladies. 2022. https://blockchainladies.africa/about.
Banerjee, Ronit. 2021. “How Much Does It Cost to Build Blockchain Projects?” Idea Usher. Idea Usher. 2021. https://ideausher.com/blog/blockchain-development/how-much-does-it-cost-to-build-blockchain-projects/.
Benson, Emmanuel Abara. 2021. “3 Days after Launch, It’s Been a Rough Patch for the ENaira; Here’s What You Need to Know.” Business Insider Africa, October 28 2021. https://africa.businessinsider.com/local/markets/3-days-after-launch-its-been-a-rough-patch-for-the-enaira/3d1ckgj.
BigchainDB. 2020. “Blockchain Powered Land Registry in Ghana with BenBen.” BigchainDB. 2020. https://www.bigchaindb.com/usecases/government/benben/.
Bloxham, Lucy. 2020. “Kibera: A Look inside Africa’s Largest Slum.” Concern Worldwide. Concern Worldwide. November 26 2020. https://www.concern.org.uk/news/kibera-look-inside-africas-largest-slum.
Boateng, Festival Godwin, and Kwabena Mintah. 2021. “Ghana’s Land Acquisition Process Generates Conflict. Blockchain Offers a Solution.” The Conversation. The Conversation Africa, Inc. August 23 2021. https://theconversation.com/ghanas-land-acquisition-process-generates-conflict-blockchain-offers-a-solution-165484.
Bridges, Jennifer. 2021. “How to Conduct a Feasibility Study - ProjectManager.com.” Project Manager. ProjectManager.com, Inc. October 8 2021. https://www.projectmanager.com/training/how-to-conduct-a-feasibility-study.
BTI Transformation Index. 2022. “Equatorial Guinea Country Report 2022.” BTI Transformation Index. Gütersloh: Bertelsmann Stiftung. https://bti-project.org/content/en/downloads/reports/country_report_2022_GNQ.pdf.
BusinessTech. 2022. “This South African University Will Start Offering Its Degrees on the Blockchain.” BusinessTech. April 19 2022. https://businesstech.co.za/news/technology/578330/this-south-african-university-will-start-offering-its-degrees-on-the-blockchain/.
Capici, Vittorio, and Wooseong Kim. 2019. “The Big Push for Blockchain Comes from the Global South.” FUF.se. FUF.se. March 5 2019. https://fuf.se/magasin/magmars-the-big-push-for-blockchain-comes-from-the-global-south/.
CEO Today. 2022. “Why Does the Government Want to Regulate Cryptocurrency?” CEO Today. February 1 2022. https://www.ceotodaymagazine.com/2022/02/why-does-the-government-want-to-regulate-cryptocurrency/.
David-West, Olayinka. 2018. “Bitcoin and Blockchain: Africa.” The Global Network for Advanced Management. February 23 2018. https://globalnetwork.io/perspectives/2018/02/bitcoin-and-blockchain-africa.
Dinham, Jeffrey. 2018. “A Practical Guide to How Blockchain Could End Corruption in South Africa.” Quartz Africa. Quartz Media, Inc. March 27 2018. https://qz.com/africa/1238247/corruption-in-south-africa-blockchains-open-ledger-could-bring-transparency/.
Encyclopædia Britannica. 2019. “Land: Economics.” In Encyclopædia Britannica. https://www.britannica.com/topic/land-economics.
Faleg, Giovanni. 2021. “Africa Futures 2030: Free Trade, Peace and Prosperity.” European Union Institute for Security Studies (EUISS). Paris: European Union Institute for Security Studies (EUISS). https://www.iss.europa.eu/sites/default/files/EUISSFiles/CP_164.pdf.
Faria, Julia. 2022. “Internet Penetration Rate Africa 2021.” Statista. May 24 2022. https://www.statista.com/statistics/1176654/internet-penetration-rate-africa-compared-to-global-average/.
FDFA. 2021. “Economic Report 2020-2021.” Switzerland Global Enterprise. Federal Department of Foreign Affairs - FDFA. https://www.s-ge.com/sites/default/files/publication/free/economic-report-egypt-2021-12.pdf.
Frankenfield, Jake. 2022. “Smart Contracts.” Investopedia. March 24 2022. https://www.investopedia.com/terms/s/smart-contracts.asp#:~:text=A%20smart%20contract%20is%20a.
Gailey, Alex. 2022. “Why Cryptocurrency Regulation Is Actually ‘a Good Thing’ for Investors, according to These Experts.” Time. NextAdvisor, LLC. April 19 2022. https://time.com/nextadvisor/investing/cryptocurrency/why-crypto-regulation-is-good-for-investors/#:~:text=Regulating%20cryptocurrencies%20could%20be%20a.
Gakwaya, Olivier, Uta Meier-Hahn, Ralph Oyini Mbouna, and Lars Wannemacher, eds. 2020. “Blockchain in Africa: Opportunities and Challenges for the next Decade.” Smart Africa. https://www.giz.de/expertise/downloads/Blockchain%20in%20Africa.pdf.
GetSmarter. 2022. “Blockchain and the Economic Problems It Could Solve.” GetSmarter. 2U, Inc. February 28 2022. https://www.getsmarter.com/blog/market-trends/the-economic-problem-blockchain-could-solve/.
GIZ. 2019. “Blockchain: A World without Middlemen? Promise and Practice of Distributed Governance.” Https://Www.cnbs.gob.hn/. Bonn and Eschborn: Deutsche Gesellschaft Für Internationale Zusammenarbeit. https://www.cnbs.gob.hn/wp-content/uploads/2019/11/Blockchain-A-World-without-Middlemen.pdf.
Gogo, Jeffrey. 2019. “Crypto-Baaed Transfers Can Cut Remittance Costs in Africa by 90%.” EMERGING MARKETS. Bitcoin.com. April 23 2019. https://news.bitcoin.com/crypto-based-transfers-can-cut-remittance-costs-in-africa-by-90/.
Gold, Shabtai. 2021. “African Countries Face Growing Risk of Debt Defaults, AfDB Warns.” Devex. June 23 2021. https://www.devex.com/news/african-countries-face-growing-risk-of-debt-defaults-afdb-warns-100212.
Gopaldas, Ronak. 2021. “The Challenges and Opportunities of Bridging Africa’s Digital Divide.” NTU-SBF Centre for African Studies (CAS). November 12 2021. https://www.ntu.edu.sg/cas/news-events/news/details/the-challenges-and-opportunities-of-bridging-the-africa-s-digital-divide.
Gov.za. 2020. “State-Owned Enterprises (SOEs).” South African Government. 2020. https://www.gov.za/about-government/contact-directory/soe-s.
Harrisberg, Kim. 2021. “Bridging Africa’s Digital Divide: The Rise of Community Internet.” World Economic Forum. World Economic Forum. December 3 2021. https://www.weforum.org/agenda/2021/12/bridging-africas-digital-divide-the-rise-of-community-internet/.
Hawkes, Alex, ed. 2018. “African Blockchain Report.” University World News. Liquid Telecom. https://t3n9sm.c2.acecdn.net/wp-content/uploads/2018/08/LIQUID-TELECOM-AFRICAN-BLOCKCHAIN-REPORT.pdf.
Hayes, Adam. 2022. “Blockchain, Explained.” Investopedia. Dotdash Meredith. March 5 2022. https://www.investopedia.com/terms/b/blockchain.asp.
Hiremotely. 2022. “6 Must-Have Blockchain Developer Skills (2022).” Hire Remotely. Hiremotely. April 27 2022. https://www.hiremotely.com/blog/blockchain-developer-skills.
Hogan Lovells. 2022. “Recent Developments in African Data Protection Laws – Outlook for 2022.” Engage. Hogan Lovells. February 1 2022. https://www.engage.hoganlovells.com/knowledgeservices/news/recent-developments-in-african-data-protection-laws-outlook-for-2022_1_1#:~:text=in%20existing%20laws-.
Huang, Eustance. 2022. “China’s Digital Yuan Could Challenge the Dollar in International Trade This Decade, Fintech Expert Predicts.” CNBC. March 15 2022. https://www.cnbc.com/2022/03/15/can-chinas-digital-yuan-reduce-the-dollars-use-in-international-trade.html.
Hussain, Syed Omer. 2020. “Prefigurative Post-Politics as Strategy: The Case of Government-Led Blockchain Projects.” The Journal of the British Blockchain Association 3 (1): 1–11. https://doi.org/10.31585/jbba-3-1-(2)2020. DOI: https://doi.org/10.31585/jbba-3-1-(2)2020
IBM. 2021. “What Is Blockchain Technology?” IBM Blockchain. IBM. 2021. https://www.ibm.com/topics/what-is-blockchain.
IFWG. 2022. “About Us.” Intergovernmental Fintech Working Group. 2022. https://www.ifwg.co.za/Pages/About-Us.aspx.
IITPSA. 2020. “Blockchain, Bitcoin Show Promise in SA, but More Skills Needed.” IT Web. ITWeb Limited. March 31 2020. https://www.itweb.co.za/content/mQwkoM6PpXGv3r9A.
Jackson, Ben. 2021. “Africa’s Digital Infrastructure Revolution.” Infrastructure Investor. PEI Media. December 1 2021. https://www.infrastructureinvestor.com/africas-digital-infrastructure-revolution/.
Kaaru, Steve. 2020. “Blockchain Jobs in Africa Rising, but Skills Still Inadequate.” CoinGeek. January 18 2020. https://coingeek.com/blockchain-jobs-in-africa-rising-but-skills-still-inadequate/.
Kamer, Lars. 2022. “GDP of African Countries 2021.” Statista. March 23 2022. https://www.statista.com/statistics/1120999/gdp-of-african-countries-by-country/#:~:text=Nigeria.
Larnyoh, Magdalene Teiko. 2021. “African P2P Users on Binance Increase by over 2000% despite Restrictions by Various Governments.” Business Insider Africa. May 18 2021. https://africa.businessinsider.com/local/markets/african-p2p-users-on-binance-increase-by-over-2000-despite-restrictions-by-various/4hfq8b2.
Luz, Nathaniel. 2019. “Will the Blockchain Solve Two of Africa’s Biggest Problems?” African Liberty. ASFL. January 21 2019. https://www.africanliberty.org/2019/01/21/will-the-blockchain-solve-two-of-africas-biggest-problems/.
Maltego Technologies. 2021. “Tracing Transactions through the Bitcoin Blockchain with Maltego.” Maltego. Maltego Technologies. March 2 2021. https://www.maltego.com/blog/tracing-transactions-through-the-bitcoin-blockchain-with-maltego/.
Masungwini, Norman. 2022. “R480 Million Bill for Scores of Idle State Cars.” City Press. Media24. April 17 2022. https://www.news24.com/citypress/news/r480-million-bill-for-scores-of-idle-state-cars-20220416.
McGovern, Thomas. 2022. “Binance Statistics 2022: How Many Users Does Binance Have? - EarthWeb.” EarthWeb. April 29 2022. https://earthweb.com/binance-statistics/#:~:text=Key%20Binance%20Statistics%202022.
Ministry of Finance - Ghana. 2018. “End-Year Report the Budget Statement and Economic Policy of the Republic of Ghana for the 2018 Financial Year.” Ministry of Finance - Ghana. https://mofep.gov.gh/sites/default/files/budget-statements/2018-Consolidated-MDAs-Annual-Budget-Performance-Report.pdf.
Mwanza, Kevin, and Henry Wilkins. 2018. “African Startups Bet on Blockchain to Tackle Land Fraud.” Reuters, February 16 2018. https://www.reuters.com/article/us-africa-landrights-blockchain-idUSKCN1G00YK.
N26. 2020. “Money Laundering: How Banks Stay One Step ahead of Criminal Activity.” N26. N26 GmbH. October 26 2020. https://n26.com/en-eu/blog/money-laundering-how-banks-stay-one-step-ahead-of-criminal-activity.
Ngari, Leah. 2021. “Regulatory Sandboxes in Africa.” Empower Africa. March 29 2021. https://empowerafrica.com/regulatory-sandboxes-in-africa/.
O’Neill, Aaron. 2021. “National Debt of Nigeria in Relation to Gross Domestic Product (GDP) 2026.” Statista. November 9 2021. https://www.statista.com/statistics/383195/national-debt-of-nigeria-in-relation-to-gross-domestic-product-gdp/.
Odendaal, Natasha. 2022. “A Step Forward as South Africa Embarks on First Spectrum Auction in over a Decade.” Engineering News, April 13 2022. https://www.engineeringnews.co.za/article/a-step-forward-as-south-africa-embarks-on-first-spectrum-auction-in-over-a-decade-2022-04-15.
Ogunjuyigbe, Oluwatosin. 2022. “Cryptocurrency Growth in Africa: Is It a Boon or Curse?” Ventures Africa. May 3 2022. https://venturesafrica.com/cryptocurrency-growth-in-africa-is-it-a-boon-or-curse/#:~:text=South%20Africa%E2%80%93based%20Luno%20Exchange.
Onyango, Conrad. 2021. “Africa: Are Internet Data Plans Affordable?” The Africa Report. September 11 2021. https://www.theafricareport.com/125706/africa-are-internet-data-plans-affordable/.
Osei, Francis, Ofori Daniel, Elizabeth Serwaa Boateng Koomson, Alfred Atakora, and Poku Julia Agyapong. 2021. “Challenges and Customer Perception on E-Zwich Patronage in Rural Banks in Ghana.” European Business & Management 7 (3): 85–94. https://doi.org/10.11648/j.ebm.20210703.14. DOI: https://doi.org/10.11648/j.ebm.20210703.14
Pavia e Ansaldo. 2019. “Cryptocurrency Regulation in East Africa.” Pavia E Ansaldo. May 10 2019. https://www.pavia-ansaldo.it/en/cryptocurrency-regulation-in-east-africa/.
Pawczuk, Linda, Rob Massey, and Jonathan Holdowsky. 2019. “Deloitte’s 2019 Global Blockchain Survey: Blockchain Gets down to Business.” Deloitte. Hermitage: Deloitte Development LLC.
Perper, Rosie. 2018. “Sierra Leone Just Became the First Country in the World to Let Its Citizens Vote Using Blockchain.” Business Insider India. March 14 2018. https://www.businessinsider.in/sierra-leone-just-became-the-first-country-in-the-world-to-let-its-citizens-vote-using-blockchain/articleshow/63292836.cms.
Prinsloo, Loni, and Roxanne Henderson. 2021. “Poor Regulation Pushing South Africa’s Crypto Firms to Relocate.” Al Jazeera. Al Jazeera Media Network. March 9 2021. https://www.aljazeera.com/economy/2021/3/9/bpoor-regulation-pushing-south-africas-crypto-firms-to-relocate.
PwC. 2021. “Blockchain Technologies Could Boost the Global Economy US$1.76 Trillion by 2030 through Raising Levels of Tracking, Tracing and Trust.” PwC. PricewaterhouseCoopers. October 13 2021. https://www.pwc.com/gx/en/news-room/press-releases/2020/blockchain-boost-global-economy-track-trace-trust.html.
Rao, Pavithra. 2018. “Africa Could Be the next Frontier for Cryptocurrency.” Africa Renewal. United Nations. April 2018. https://www.un.org/africarenewal/magazine/april-2018-july-2018/africa-could-be-next-frontier-cryptocurrency. DOI: https://doi.org/10.18356/f6b3e553-en
Rathburn, Daniel. 2022. “Countries Developing a Central Bank Digital Currency (CBDC).” Investopedia. March 11 2022. https://www.investopedia.com/countries-developing-central-bank-digital-currency-cbdc-5221005.
Reiff, Nathan. 2021. “How Blockchain Can Help Emerging Economies.” Investopedia. October 26 2021. https://www.investopedia.com/tech/how-blockchain-can-help-failing-economies/#:~:text=Among%20its%20many%20advantages%20
Reuters. 2022. “Central African Republic Adopts Bitcoin as an Official Currency.” Reuters, April 28 2022, sec. Africa. https://www.reuters.com/world/africa/central-african-republic-adopts-bitcoin-an-official-currency-2022-04-27/.
SA Treasury. 2022. “National Treasury.” South African Treasury. IMF. February 7 2022. http://www.treasury.gov.za/comm_media/press/2022/2022021101%201ZAFEA2022001%20Article%20IV%20Press%20Release%20and%20Staff%20Report%20Feb%202022.pdf.
Saleh, Mariam. 2022. “Africa: Number of Startups by Country.” Statista. February 14 2022. https://www.statista.com/statistics/1290679/number-of-startups-in-africa-by-country/.
Sawahel, Wagdy. 2018. “Universities Should Address Demand for Blockchain Skills.” University World News. October 12 2018. https://www.universityworldnews.com/post.php?story=20181010064727399.
Simons, Bright. 2022. “African Governments Are Turning to Cryptocurrencies but Can They Team Up?” Brookings. March 16 2022. https://www.brookings.edu/blog/future-development/2022/03/16/african-governments-are-turning-to-cryptocurrencies-but-can-they-team-up/.
Tau, Rebone. 2021. “Corruption Is Not the Only Stumbling Block to Service Delivery.” Mail & Guardian. Mail & Guardian Online. October 29 2021. https://mg.co.za/special-reports/2021-10-29-corruption-is-not-the-only-stumbling-block-to-service-delivery/.
Terenzi, Carlos. 2018. “Crypto and Blockchain Courses around the Globe.” Bitcoin Hub. April 13 2018. https://bitcoinhub.co.za/crypto-and-blockchain-courses-around-the-globe/.
Transparency International. 2013. “Transparency International - Global Corruption Barometer.” Transparency International. Transparency International. 2013. https://www.transparency.org/gcb2013.
“Corruption Perceptions Index 2022.” Corruption Perceptions Index. Berlin: Transparency International. https://images.transparencycdn.org/images/Report_CPI2022_English.pdf.
Ukwueze, Festus. 2021. “Cryptocurrency: Towards Regulating the Unruly Enigma of Fintech in Nigeria and South Africa.” Potchefstroom Electronic Law Journal 24 (2021): 1–38. https://doi.org/10.17159/1727-3781/2021/v24i0a10743. DOI: https://doi.org/10.17159/1727-3781/2021/v24i0a10743
Ventura, Luca. 2022. “Poorest Countries in the World 2021.” Global Finance Magazine. May 1 2022. https://www.gfmag.com/global-data/economic-data/the-poorest-countries-in-the-world.
Weeks, Andrew. 2013. “The Right to Be Forgotten in South Africa.” Michalsons. March 26 2013. https://www.michalsons.com/blog/the-right-to-be-forgotten/11868#:~:text=The%20.
White, Tamara. 2021. “Figure of the Week: Governance, Citizen Dissatisfaction, and Levels of Trust in Africa.” Brookings. The Brookings Institution. March 31 2021. https://www.brookings.edu/blog/africa-in-focus/2021/03/31/figure-of-the-week-governance-citizen-dissatisfaction-and-levels-of-trust-in-africa/.
Whitehouse, David. 2020. “Africa Needs Co-Ordinated Approach to Blockchain Regulation.” The Africa Report. September 28 2020. https://www.theafricareport.com/43310/africa-needs-co-ordinated-approach-to-blockchain-regulation/.
Wu, John. 2022. “Pros and Cons of a More Regulated Blockchain Ecosystem.” Hackermoon. June 16 2022. https://hackernoon.com/pros-and-cons-of-a-more-regulated-blockchain-ecosystem-a8fb9595d242.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Perspectivas - Journal of Political Science
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Authors must be sure that they have permission to reproduce copyright material, prior to submitting their articles to this Journal.
Authors must secure permission if they have permission to reproduce figures, tables, or any extract from the text of another source. This applies to direct reproduction as well as to any derivative reproduction.
In assigning copyright, authors retain their right to use their own material elsewhere, provided that the Journal is acknowledged as the original place of publication, and the Editorial Team is notified in writing in advance.
Further information on copyright policy please contact info@perspectivasjournal.com
