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Abstract

Blockchain technology, with its decentralized and immutable nature, presents a transformative opportunity for enhancing transparency and security in financial reporting within the African accounting landscape. This review delves into the potential of blockchain to address longstanding challenges in financial reporting, such as fraud, data manipulation, and lack of real-time access to financial data. African accounting systems, characterized by varying levels of technological adoption and regulatory frameworks, stand to benefit significantly from blockchain’s capabilities. The review begins by providing an overview of blockchain technology, highlighting its key components, such as distributed ledger technology, cryptographic security, and consensus mechanisms. These features collectively ensure that financial transactions are recorded in a transparent, tamper-proof manner. The discussion then shifts to the current state of accounting practices in Africa, identifying prevalent issues related to transparency and security. Traditional accounting methods often fall short in providing the level of trust and integrity required in modern financial environments. Through case studies and practical examples, the review illustrates how blockchain can enhance transparency by offering real-time access to immutable financial records, thereby increasing trust among investors and stakeholders. Additionally, the security features inherent in blockchain, such as data encryption and secure authentication, are examined in the context of mitigating risks associated with cyber-attacks and fraud. However, the implementation of blockchain in African accounting is not without challenges. Technical hurdles, regulatory compliance, and the economic implications of adopting new technology are critically analyzed. This review provides strategic recommendations for overcoming these obstacles, emphasizing the need for policy support, capacity building, and collaboration between accounting professionals and technology providers. This exploration underscores the potential of blockchain to revolutionize financial reporting in Africa by significantly improving transparency and security. It calls for a concerted effort from all stakeholders to embrace this technology, fostering a more reliable and efficient accounting environment across the continent.
Keywords: Blockchain Technology, African Accounting Transparency, Review.