Smart Contracts as a Tool for Enhancing Public Procurement Transparency in Africa

Abstract

Public procurement in Africa is hindered by systemic corruption, inefficiency, and a lack of accountability, undermining economic growth and public trust. This analysis examines the transformative potential of smart contracts, built on Distributed Ledger Technology (DLT), as an innovative solution to enhance transparency and integrity in the continent's procurement systems. The study analyzes how smart contracts, by embedding procurement rules into immutable code, minimize human discretion and create tamper-proof audit trails for processes from bid submission to payment. Drawing on global precedents and emerging African cases (including DLT use in Guinea-Bissau's public wage bill), the paper finds that while smart contracts are technically feasible and highly beneficial, their successful adoption is contingent upon overcoming significant structural barriers. These challenges include adapting outdated legal frameworks to recognize the legal personality of contract code, addressing low digital infrastructure compatibility, and managing cultural resistance from officials who benefit from the existing discretionary systems. The paper concludes with key recommendations for African governments, emphasizing the necessity of parallel legal reform, targeted capacity building, and strong political commitment to leverage this technology for achieving Sustainable Development Goal 16 (Peace, Justice, and Strong Institutions).