Ghana adopts Blockchain to combat fraud

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Ghana reached a $3 billion loan deal with the International Monetary Fund (IMF) last year. Now it will become the first African country to reduce government corruption by adopting blockchain technology for all government procedures.

“We will adopt blockchain technology to ensure that all data and transactions in the government space are transparent and tamper-proof,” Vice President Mahamudu Bawumia said on May 14 at the Commonwealth Regional Conference and Annual General Meeting of Heads of Anti-Corruption Agencies. in Africa.

Ghana’s previous plan, Revenue Assurance and Compliance Enforcement, aimed to identify and eliminate revenue leakages in areas such as petroleum bunkering, gold and mineral exports, port operations, transit goods, warehousing, border controls and free zone operations.

“Implementing blockchain technology to secure government revenues involves creating a transparent, secure and efficient system for managing and tracking income and expenditure,” said Arthur Augustus, a senior software engineer at the Lagos-based fintech supplier Parthian Partners Limited.

By leveraging blockchain’s immutability, decentralization and transparency, African governments can significantly reduce fraud, improve tax compliance and ensure efficient use of public resources. This, in turn, will lead to better governance and greater public trust, Augustus said.

“Government procurement processes can be managed using smart contracts, ensuring that contracts are awarded and executed based on predefined criteria. Also, blockchain can be used to track the supply chain of goods and services purchased by the government so that there is no misreporting in the supply chain,” he said.

These automated contracts ensure that all parties compete fairly and that the most suitable supplier is selected, while enabling proper follow-up through the supply chain. They also ensure that goods and services are delivered as specified and prevent fraud and misreporting. According to Augustus, governments must prepare for the downsides of this innovation, including data privacy issues, environmental impacts and resistance to change. He added that they can mitigate these challenges by investing in technical expertise, creating robust legal frameworks and ensuring the transition to blockchain is inclusive and sustainable.

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