From Doge to Government: Why Blockchain Could Transform Public Tendering in South Africa

When Elon Musk tweets, the world listens—often with raised eyebrows and a dash of scepticism. But his recent move to invite blockchain leaders to discuss how blockchain technology could be better utilised in governance sparked something entirely different for me: a revisitation of my Oxford MPP research on how blockchain could revolutionise public tendering processes in South Africa.

Admittedly, comparing Doge memes with government procurement might seem like a stretch, but the underlying technology—blockchain—has an extraordinary capacity to solve real-world problems. And in South Africa, where public misspend has become an almost routine headline, blockchain could be the technological ally we desperately need to restore trust, ensure transparency, and optimise public funds

Public Tendering: A System Ripe for Disruption

South Africa’s public tendering processes have long been plagued by inefficiencies and corruption. According to Smart Procurement, South Africa loses around R25-R30 billion annually from its government procurement budget due to tender corruption, representing a significant portion of the total procurement budget. From inflated bids to non-existent “ghost projects,” these inefficiencies erode not only public trust but also the country’s ability to deliver essential services like education, healthcare, and infrastructure.

The Zondo Commission painted a grim picture of how tenders are manipulated to benefit politically connected entities. Bid specifications are mysteriously altered, documents vanish, or contracts are awarded for services that are never delivered. It’s a system so opaque that even honest actors struggle to navigate it.

Enter Blockchain: A Game-Changer for Tendering

Blockchain technology, with its ability to create tamper-proof, transparent ledgers, offers a way to redesign these broken processes. Here’s how:

• Immutable contracts

With blockchain, every step of the tendering process—from bid submission to contract execution—can be recorded on a decentralised ledger. This means once terms are coded into a smart contract, they cannot be altered. For South Africa, this would eliminate the shady “last-minute changes” that often derail fair tendering.

• Conditional payments

Smart contracts could enforce milestone-based payments, releasing funds only when specific deliverables are met and verified. Imagine a construction project where payments are triggered only after blockchain-verified geotagged photos show the foundation, walls, and final structure completed. This would prevent funds from being misappropriated for incomplete or non-existent work.

• Transparent audit trails

Every transaction on a blockchain is publicly accessible and traceable. This would make it significantly harder for funds to “disappear” into a black hole. Citizens, media, and oversight bodies could monitor public spending in real time, holding both contractors and officials accountable.

• Bid evaluation without bias

Blockchain systems could anonymise bid submissions, ensuring that awards are based solely on merit rather than political connections. Smart contracts could score bids against pre-set criteria, removing human subjectivity from the equation.

Revisiting My Oxford Research

When I first explored blockchain’s potential in public tendering during my Master of Public Policy at Oxford, the challenge felt both urgent and deeply personal. South Africa has a proud tradition of resilience and innovation, but the persistence of systemic corruption is a weight on its potential. Blockchain offered a way to tilt the balance.

The crux of my research was simple: how do we build trust in systems that have repeatedly let us down? Blockchain doesn’t just promise transparency—it enforces it. By decentralising records and automating processes, it makes corruption not just difficult, but impractical.

The Cost of Inaction

The financial loss from procurement corruption is staggering. Every rand lost to misspend is a road not built, a classroom not funded, a hospital understaffed. Over the last decade, South Africa has lost billions to irregular expenditure, and the ripple effects are felt in every corner of the country.

Blockchain won’t solve all our problems, but it can make corruption and inefficiency harder to hide. It can also make government spending more efficient, directing resources to where they’re most needed.

Final Thoughts: A Call for Action

Elon’s invitation for blockchain leaders to explore governance use cases might seem like a quirky Dogecoin experiment, but it highlights an important point: governance needs innovation. Whether it’s a meme coin or a public procurement system, the ability to track, verify, and automate processes is what makes blockchain revolutionary.

For South Africa, the potential is enormous. Imagine a tendering process where corruption isn’t just monitored but actively prevented. Imagine a future where public funds are not a source of scandal but a tool for progress.

Elon’s antics aside, the conversation around blockchain in governance is one we need to take seriously. South Africa has an opportunity to turn its challenges into a blueprint for innovation. But this won’t happen by accident—it will require collaboration between policymakers, technologists, and civil society.

Whether you’re a blockchain enthusiast, a policymaker, or someone who just wants to see public money used responsibly, the time to explore these solutions is now. Blockchain isn’t just a buzzword; it’s a chance to rebuild trust and transform how we govern.