Assessing the Readiness of the South African Public Sector to Embrace Blockchain Technology: Factors for Successful Adoption

Abstract

The recent rise in technological developments through the Fourth Industrial Revolution has impacted how businesses and governments globally operate, requiring a shift in strategies and governance systems. A study into one of these technologies reveals that blockchain technology could enhance the effectiveness and efficiency of operations in the public sector through its transparency-enhancing measures. Although countries globally may have adopted, or are in the process of adopting blockchain technology, South Africa is lagging. The study assessed the readiness of the South African public sector to adopt blockchain through an analysis of factors for successful adoption. The population comprised officials in four provincial departments in Gauteng province, South Africa. A quantitative research approach was adopted using close-ended questionnaires, descriptive statistics, and factor analysis. The results, contrasted with evidence from other countries, suggest that the South African public sector may not be ready to adopt blockchain. There is an urgent need to upgrade the current financial reporting systems, as the findings revealed incompatibility of blockchain with the current systems which could pose a significant challenge to the adoption process. Legislative requirements also emerged as a concern, as there is currently no legislation governing blockchain in South Africa. The study contributes to the literature by integrating existing theory and evidence from Gauteng government departments in illustrating the success factors and the readiness for the South African public sector to adopt blockchain technology, prompting the country to prepare adequately. The analysis sheds light on factors to be considered for successfully implementing blockchain technology.