Mitigating bureaucratic inefficiencies through blockchain technology in Africa

Abstract

With the Fourth Industrial Revolution (4IR) wave engulfing African governments, the need to do, and use something new has already infiltrated many public sector organizations. While modern technologies are being embraced in the private sector, African governments are emulating new technologies and other Information Communication Technologies (ICTs) to advance their economies while managing the risk that these sophisticated technologies can trigger. Blockchain technology is one of the emerging 4IR technology that is believed to have the capacity to mitigate bureaucratic inefficiencies, although scholars argue implementing such comes at a higher price. To understand how blockchain can help reduce inefficiencies in African bureaucracy, the researchers employed the systematic literature review analysis where documents from various databases such as Scopus, Web of Science, and Google Scholar were systematically sampled depending on how they offer meaningful data concerning blockchain implementation. The analyses of these secondary sources revealed multiple challenges and opportunities associated with blockchain technology in the African government. The challenges include poor project management, weak institutions that do not uphold accountability and transparency in data entry using blockchain, unavailability of blockchain infrastructure, risk-averse attitude, and absence of institutional readiness. By implementing enabling technology policies in government, the study revealed that blockchain could help improve taxation in African bureaucracies and mitigate data altering and errors while maximizing efficiency. Further merits in public healthcare and education can be realized by using blockchain technology. The conclusions drawn from this study have shown that for African bureaucracy to thrive using blockchain technology, there is a need to prepare public sector institutions to embrace blockchain technology. At the same time, investment in soft and technical skills remains fundamental to mitigate inefficiencies in public service provision. Institutional readiness is another deterrent to blockchain technology as public administration regard this technology as demanding since it may require change, and management where institutions and structures are reshuffled to respond to the demands of blockchain technology in the delivery of public goods.

Enhancing governance through blockchain technology in the South African public sector

“…Several advantages are envisaged from blockchain technology such as improved record keeping when contrasted to the traditional methods of keeping and auditing government's transactions (Shava & Mhlanga 2023). The most significant advantages being transparency and anonymity in the recording of transactions.…”

“…Dubai is the global leader in the world's smart cities, maximising the potential blockchain technology on their cities (Bishr 2019). Similarly, Brazil, consequently, adopted blockchain technology in their Public Digital Bookkeeping system, while Kenya is one of the few African countries that has embraced blockchain in the verification of transactions and records (Shava & Mhlanga 2023).…”

The Role of FinTech in Sustainable Healthcare Development in Sub-Saharan Africa: A Narrative Review

“…In many countries in Sub-Saharan Africa, healthcare financing is fragmented and inefficient, with limited access to healthcare insurance and a reliance on out-of-pocket payments. Blockchain technology can enable the development of new financial instruments, such as micro-insurance and crowdfunding platforms, that can improve access to healthcare financing and reduce the financial burden on patients [41]. Blockchain can also facilitate tracking healthcare expenditures, enabling greater transparency and accountability in using healthcare funds [35].…”

“…Herein lies the potential of the blockchain, not as a buzzword or generic solution, but as a targeted intervention. By creating a secure and decentralized ledger of health information, a blockchain could facilitate effective data sharing between healthcare providers, encouraging greater collaboration and care coordination [41]. Moreover, a blockchain could pave the way for decentralized healthcare systems, breaking away from traditional models burdened by costly intermediaries.…”

“…One of the critical challenges is the lack of digital infrastructure in the region, with many areas lacking reliable internet access and mobile networks [35], potentially limiting the effectiveness of blockchain-based solutions and preventing their widespread adoption. Furthermore, there are concerns about data privacy and security, particularly in countries with limited regulatory oversight [41]. Finally, healthcare providers and policymakers need greater awareness and understanding of blockchain technology, which can slow the adoption of blockchain-based solutions.…”