Blockchain technology is a new and emerging technology that can alter the course of African history. It is a distributed ledger technology and uses blocks and chains to store data. Blockchain is a decentralised, open, and secure ledger that keeps track of transactions on numerous computers around the globe. It has applications in sectors of an economy in society, including agriculture, manufacturing, and energy. It can also keep data on any transaction, including money transfers, identity checks, and other financial transactions.
Blockchain technology is thus a digital, distributed ledger. It removes the requirement for third parties to guarantee transactional trust. As a result, blockchain is expected to impact Africa significantly, perhaps more than any other continent. According to World Bank estimates, with blockchain, the economies of African nations could grow by a factor of six by 2030. It can be applied to address some of the most pressing issues in the continent.
There are many issues in Africa begging for a solution so that its countries can be free to start meaningful development efforts. The issues needing attention range from lack of electricity, food ecosystem management, transportation, city management, voting, and public sector management to health care management. Unfortunately, access to knowledge, information, and education in Africa has also been very difficult. Poverty and low living standards result from a lack of these things across the continent. Numerous of the most critical problems we face could be resolved by blockchain technology, especially when co-mingled with Artificial intelligence. We will look at some of these issues and how blockchain technology can help to solve them in the following section.
Let us start by looking at corruption as a problem. Many African nations struggle with severe corruption, exacerbating underdevelopment, inequality and poverty. Blockchain is a cutting-edge technology that could revolutionise Africa’s approach to handling corruption. In order to combat the current corruption problems, blockchain creates a decentralised, transparent digital ledger of transactions. Blockchain can assure a reduction in corruption as any change at any of its nodes is seen at each of the other nodes. Who made the change is always noted, and the record is immutable. Moreover, it always keeps an audit trail. All these make it extremely difficult for anybody to cheat using a blockchain-enabled system. Thus, it allows corrupt public officials and businesses to be identified and punished for their actions. Furthermore, by making it more difficult for dishonest officials to steal money and move it out of the country undetected, blockchain technology may help reduce corruption.
Food security is the second example of where Blockchain can be deployed beneficially in Africa. Food security has been a problem in Africa for decades, and blockchain technology has the potential to increase transparency in food supply chain management, making it easier for people to know where their food comes from and how fresh it is because they will be able to see where and when it was processed. Blockchain technology provides reliable data to stakeholders in the agri-food supply chain. The blockchain network’s distributivity encourages openness and the tracking of products and services in a supply chain. The purpose of a smart tracking system is to use correct labelling and precise tracking to eliminate substandard items and unsatisfactory delivery. The implementation of hash encryption methods promotes network security. It enables customers and other stakeholders to track network information from the point at which a farmer produces a product to the point at which it is distributed and sold. Although many logistics information systems in the agri-food supply chain capture information regarding orders and receipts, they ignore other crucial elements such as transparency, traceability, and auditability. By adopting blockchain technology in the agri-food supply chain, all nodes’ network activities are transparent, and all data recorded is based on network members’ consensus. Blockchain-based solutions can also help revitalise Africa’s agricultural sector, thereby improving food security for all.
Giving the unbanked African population access to financial services is the third issue we will consider. Blockchain technology is ideal for Africans, as many often lack access to conventional banking and digital financial services. Africa’s future economic growth and transformation depend on creative financial solutions that consider the continent’s unique needs. Blockchain-enabled payments and remittances, which are more affordable, swifter, secure, and transparent, give the continent a chance to advance traditional banking and linking of the unbanked.
The fourth issue we will look at is the electoral voting system. In Africa, the electoral system is still flawed. In South Africa, Senegal, Cape Verde, Mali, Kenya, Benin, and Ghana, democratic governments have emerged due to elections. Sierra Leone, Niger, Liberia, and Guinea have achieved more stable societies after years of autocratic rule and prolonged civil wars. However, on occasion, elections have been rigged to guarantee dynastic successions across the continent or to legitimise authoritarian regimes. Approximately 20% to 25% of African elections are still marred by violence (Bekoe, 2010). At least 4,000 people have died, and hundreds of thousands have been displaced as a result of recent high-profile electoral crises in the Democratic Republic of Congo (2016-2018), Côte d’Ivoire (2010–2011), Zimbabwe (2000 and 2008), and Kenya (2007–2008). A person’s confidence in democratic processes may be damaged by electoral violence. A distributed ledger that runs on blockchain is decentralised, secure from hacking, and tamper-proof. It therefore, has the potential to transform African electoral processes. It can boost voter turnout by making voting more convenient, affordable, and verifiable.
In conclusion, blockchain technology has the potential to streamline and improve a variety of deleterious African practices, including how the continent approaches electoral systems, food security management, and financial services. It provides a transparent, secure system that enables transactions to happen without the requirement of a centralised authority. Moreover, a distributed network ensures the integrity of the data rather than having one individual or institution control it.
References
Dorina Bekoe, “Trends in Electoral Violence in Sub-Saharan
Africa,” Peace Brief 13, United States Institute of Peace, March 10, 2010,
available at http://www.usip.org/files/resources/PB13Electoral%20Violence.pdf
