Blockchain in Africa: an underexploited potential in the face of governance challenges
July 16th 2025
Seen as a solution to corruption and administrative opacity, blockchain is attracting more and more African states. But its deployment remains hampered by legal, technical, and human challenges that are slowing its integration into public policies.
Blockchain, a distributed, tamper-proof, and decentralized ledger technology, allows data to be recorded transparently, securely, and immutably. While often associated with cryptocurrencies, its use cases now extend beyond the financial sector. Many governments see it as a lever to improve governance, strengthen the transparency of public services, and restore trust between the state and citizens.
In a context where African administrations are still marked by bureaucratic red tape, and where document fraud, land disputes and electoral opacity undermine institutions, blockchain appears to be a technology capable of profoundly transforming public management.
Concrete uses in the service of governance
Land management is one area where blockchain is demonstrating its potential. In many African countries, land registries are manual, fragmented, and vulnerable to tampering, hampering investment and fostering conflict. By recording transactions in a tamper-proof and time-stamped manner, blockchain secures property titles and increases transparency.
Ghana has emerged as a pioneer on the continent with the experiment conducted by the start-up Bitland since 2016, which made it possible to digitize land titles on blockchain in certain localities, thus facilitating proof of ownership and access to credit.
In the electoral field, Sierra Leone distinguished itself in 2018 by becoming the first country in the world to use blockchain to certify election results. Although limited to one district during a presidential election, this initiative allowed for the testing of a more transparent and secure vote counting system, avoiding the usual manipulation of voting records and strengthening confidence in the electoral process. Other countries such as Nigeria and Kenya are considering similar measures to make voter registration more reliable or improve polling logistics.
Blockchain is also being used to improve budget transparency. In Uganda, the “BE Transparent” project has tracked fund transfers to public schools, with each step recorded on a distributed ledger, thus limiting the risk of misappropriation. Similar approaches are emerging to track agricultural subsidies, social assistance, and public procurement.
A response to administrative exclusion
The creation of digital identities represents another strategic area of application. In countries where millions of people lack birth certificates or official ID, blockchain offers an innovative solution for creating reliable, portable, and sovereign digital credentials. In 2017, Africa was home to more than 500 million people without legal identity, representing more than half of the one billion individuals affected worldwide, according to the World Bank.
This administrative invisibility deprives these populations of access to essential services such as healthcare, education, social protection, and finance. By integrating distributed ledger technologies, blockchain-based solutions not only ensure the authenticity and traceability of identities, but also strengthen trust between the state and citizens, while combating fraud and identity theft.
A potential still underexploited
Despite this transformative potential, blockchain adoption in Africa remains limited to pilot projects or isolated initiatives. According to a report by Crypto Valley Venture Capital (CV VC), in partnership with Absa Bank, published on July 8, 2024, African blockchain startups raised $122.5 million in 2024, down 36% from 2023 and well below the peak of $474 million reached in 2022.
The continent thus accounted for only about 1% of the $12.1 billion in funding raised by the blockchain industry globally last year. South Africa, Nigeria, and Kenya alone account for more than 80% of African blockchain startups, the majority of which focus on fintech or cryptocurrencies. The use of this technology in public governance remains embryonic, hampered by a series of structural and institutional constraints.
The global blockchain market, meanwhile, is showing signs of strong expansion. According to a study by Fortune Business Insights, it was valued at USD 20.16 billion in 2024, is expected to reach USD 31.18 billion in 2025, and climb to USD 393.42 billion by 2032, with an estimated compound annual growth rate (CAGR) of 43.6%. North America currently dominates the market with a share of 43.65% in 2024.
Challenges to overcome
Among the main obstacles to development is, first and foremost, the lack of digital infrastructure. A large proportion of rural African areas lack reliable internet coverage, which limits the implementation of decentralized solutions. Added to this are the lack of technical skills, the absence of appropriate regulatory frameworks, and institutional distrust of a technology that is still perceived as complex, even uncontrollable.
Standardizing solutions is also a challenge. Many blockchain projects are developed on proprietary or non-interoperable platforms, making their integration into existing administrative systems difficult. Finally, the high initial cost of implementation can discourage governments, especially in contexts of severe budgetary pressure.
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