Ghana secured a $3 billion loan from the International Monetary Fund (IMF) last year. Now, the country plans to be the first in Africa to tackle public corruption by implementing blockchain technology across government operations.

Vice President Mahamudu Bawumia announced this initiative during the May 14th Commonwealth Regional Conference and Annual General Meeting of Heads of Anti-Corruption Agencies in Africa, stating, “We are adopting blockchain technology to ensure that all government data and transactions are transparent and tamper-proof.”

Previously, Ghana’s Revenue Assurance and Compliance Enforcement initiative aimed to address revenue leakages in sectors like petroleum bunkering, gold and minerals exports, port operations, and border controls.

Arthur Augustus, a senior software engineer at Lagos-based fintech firm Parthian Partners Limited, explained that using blockchain technology to manage government revenue will create a transparent, secure, and efficient system for tracking finances.

Augustus noted that blockchain’s features—such as immutability, decentralization, and transparency—could help African governments reduce fraud, improve tax compliance, and ensure the effective use of public funds. This, he believes, will enhance governance and build public trust.

He also highlighted that blockchain could streamline government procurement through smart contracts, which ensure that contracts are awarded and executed based on set criteria. Additionally, blockchain could be used to monitor the supply chain for goods and services procured by the government, reducing the risk of misreporting.

However, Augustus warned that governments must be prepared for potential challenges, including data privacy concerns, environmental impacts, and resistance to change. To address these issues, he recommends investing in technical expertise, developing strong legal frameworks, and ensuring an inclusive and sustainable transition to blockchain technology.