“The skin has become inadequate in interfacing with reality. Technology has become the body’s new membrane of existence” (Nam June Paik). Technology has brought a significant influence and impact on the world since its presence in the 17th century. It has brought tremendous change into the world. Africa is no exception.
But how well has technology impacted Africa? Over the
years, Africa has underutilized technology, making its impact less seen.
Although technology continues to advance swiftly in western societies,
developing nations, especially those in Africa, are falling behind, which
widens the divide between the world’s haves and have-not.
Findings reveal that globalization is more than just a way
of accessing new markets; it also increases productivity through technological
transfers. Furthermore, improved macroeconomic policies, sustained reform,
human capital, more robust governance, and a better investment climate are
required to accelerate technological catch-up and put African countries on
long-term growth. Africans are falling short when it comes to these aspects.
Technology cannot speed up when these factors are still not implemented.
Technological advancement is triggered by education and
literacy. To operate a system, you need to know the system. Although literacy
rates in Africa have risen significantly in recent years, empirical evidence
suggests that 40 percent of teenagers above 15 years and a half (50%) of the
population of women above 25 years are illiterate. The continent’s education
and knowledge levels have been further handicapped by the current unfavorable
macroeconomic environment, which has significantly impacted education and
expertise levels over the previous two decades.
Africans lagging in technology is also a result of
outdated government policies. Governments fuel technological innovation,
industrial progress, and higher living standards, but in Africa, governments
aren’t paying much attention to any of this. Governments have enacted policies
that are detrimental to progress. African governments have invested far less
than the rest of the world in the investment sector.
African government’s over the years have invested little
in technological research and innovations. Several studies suggested that
governments spend about 2.6 percent of annual GPD on technological education,
research, and innovations as compared to other developed countries like the USA
and UK which spend 9.3 percent and 7.7 percent respectively. The reason Africa
is lagging behind the rest of the world.
Africa is faced with poor infrastructure, which has been
one of the causes of Africa’s lagging in technology. The connectivity is
significantly less in Africa as compared to the other world. Accessibility to
electricity is one dividing factor in Africa. In most African countries, just
slightly more than half of the homes have access to electricity. In contrast,
in certain countries, such as Tanzania, Uganda, Rwanda, and Ethiopia, power is
available to less than 20% of households. This all makes a significant impact,
and because of the lack of power, the African people cannot experience the most
up-to-date technologies available to the rest of the globe.
Amid all these factors which make Ghana lag behind,
Africans are rising and causing a change in the technological aspect of Ghana
by introducing blockchain technology into the system. Blockchain technology,
which began as a mechanism to support Bitcoins (the most popular and
contentious cryptocurrency in the world), has quickly established itself as a
disruptive technology capable of revolutionizing existing businesses and
creating new ones to boost the economy of Africa.
Blockchain technology describes a new approach to data
management. It refers to a type of distributed ledger architecture in which
transactions are stored in a list of blocks that are cryptographically linked.
Blockchains are intended to be physically distributed. The records on a
blockchain are spread over many computers that form a network rather than being
on a single server, such as that of a bank or government agency.
This means that original copies of the same data are kept
in different places. Even if a portion of the network fails, the ledger remains
available to all other network participants. Unless all nodes in the network
fail, the ledger’s integrity, availability, and operability are preserved. This
is a high level of resilience. Consider the possibility of verification of
educational claims remaining easily accessible even if a university’s server is
destroyed in a natural disaster.
To create the trust in the ledger’s status that blockchain
is generally commended for, the system may rely on incentivization methods that
encourage network participants to act favorably. Participants may be
compensated (economically) for positively contributing to the system (i.e., by
processing and validating transactions) as part of a blockchain’s consensus
mechanism. The Bitcoin blockchain is an example of this reward system, in which
successful validation of new transactions is rewarded with bitcoin pay-outs.
Blockchains have some limitations as well. Added
individual new blocks to the chain, expands the size limitations of the chain
creating lags that affect the speed of processing transactions. Another
challenge has also been the redundancy of previously linked blocks on the
chain.
Africa can benefit from the deployment of blockchain
technology to facilitate cross-border transactions, which will help lower the
high cost of remittance payments, enable access to financial services, secure
privacy, create jobs, improve the business environment, and stimulate healthy
competition. To name a few benefits of blockchain technology, cross-border
payments will rely less on correspondent networks, data will be standardized,
and credit risks will be better managed.
Blockchain technology can eliminate friction and
disagreement, as well as the costs associated with property registration.
Smartphones can be used to perform all or most of the processing. Given this,
the fact that several initiatives have been launched is positive. Bitland, a
real-estate registration company based in the United States, announced the
launch of a blockchain-based land registry system in Ghana, where 78 percent of
the land is unregistered.
In Ghanaian courts, there is a significant backlog of
land-dispute cases. Bitland securely records transactions, including GPS
positions, written descriptions, and satellite pictures. This and comparable
systems are expected to protect property rights while reducing corruption. As
of mid-2016, 24 Ghanaian communities had shown interest in the project. Bitland
intends to expand into Nigeria in conjunction with the Nigerian government.
Developing countries in Africa tend to enhance
socio-economic growth and development by adopting blockchain technology to curb
fraud and corruption. Financial transactions can also be processed more quickly
with much less time ensuring transparency and efficiency.
David is a Business Analyst and a Project Manager
with keen research interests in insurance, financial inclusion, business
finance, health, and safety systems.
Email: daviddoef@gmail.com
Christian is a Business Administration at Ashesi
University, a Project Manager, and an upcoming Data Analyst with a strong
passion for accounting, finance, and economics aspiring to become a Chartered
Accountant.
Email: christiannarh17@gmail.com
Source: thebftonline.com