Journal of Economics, Management and Trade

The popularity of smart contracts is synonymous with blockchain. However, the blockchain application supersedes smart contracts. Nonetheless, sub-Saharan African countries can benefit from the cost-reduction, risk elimination, and timely execution properties of smart contracts. Therefore, the study assesses the prospects and challenges of diffusing smart contracts in the sub-region. Using the Computer School Selection and Placement System (CSSPS) of Ghana Education Services as a case study, the investigation applies 1154 online survey data in a hierarchical logistic regression model to estimate the effects of end-user demographics (students, teachers, parents), the prospects and challenges of the CSSPS on diffusion. The results disclose that although the CSSPS reduces cost and improves efficiency, lack of flexibility, information asymmetry, and inequity in the selection and placement of students is problematic. Further, end-user characteristics had marginal significant effects on the diffusion, the perceived prospects of the CSSPS had strong positive effects on diffusion, and the perceived challenges of the CSSPS had a negative relationship on the diffusion of CSSPS in Ghana. This provides guidelines for the design and the deployment of smart contracts in public and private service delivery in sub-Sahara Africa.