Latest Study Shows Only Nigeria and South Africa in Africa at the Adoption Stage of Blockchain in the Public Sector

A new study conducted by GovChain has shown that only Nigeria and South Africa in the entire African continent are at the adoption stage of blockchain in the public sector.

The global study has also classified Ghana and Kenya as the only two other African states at the preliminary ‘Investigation Stage’ of the technology.


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The study is aimed at providing a glance at how countries are doing in public sector blockchain adoption per region.

The study looked into the following factors during the evaluation process:

  • Propensity of Change – Political stability, openness to technological change, digital transformation strategy, and clear leadership
  • Legal CertaintyFriendly regulatory environment, level of clarity, and the presence of regulatory sandboxes or innovation hubs
  • Infrastructure – Existence and variety of use cases in the public sector, level of investment, and tax credits

Based on the trends, the report has also set out 5 key policy recommendations for governments and public sector bodies around the world. These include:

  • Carry out a cost/benefit analysis of upgrading public sector IT systems using blockchain / DLT based on the successes at the local level
  • Promote international and cross-border cooperation to allow blockchain projects to scale
  • Establish sandboxes and innovation hubs supported by adequate levels of investments and continous dialogue in order to mitigate regulatory uncertainty and promote innovation
  • Avoid premature termination of use cases by assigning sufficient resources to test applications while offering economic rationale of blockchain-based models
  • Define public procurement criteria that is blockchain-based to increase transparency, traceability, and trust in government purchases and improved access for SMEs in order to prmote local growth and support regional policies

Both the Nigerian and South African regulatory spaces have published papers and information that show they are willing to consider cryptocurrencies and blockchain in a positive light. Kenya and Ghana, on the other hand, have shown interest in the technology by supporting partnerships with IBM and establishing investigative taskforces to look into the technology.

While the report highlights only 4 African countries, a few other countries, notably Uganda, Rwanda, and Tanzania have also shown interest and consideration for the technology and cryptocurrencies.


About GovChain

The GovChain Project report aims to paint an accurate picture of the state of implementation and regulatory treatment of blockchain by the public sector around the world. Using a traffic light rating system, the report provides a rough guide to the varying levels of blockchain adoption across the targeted jurisdictions, identifying emerging patterns and trends.




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