Accelerating Innovation in Africa through Regulatory Sandbox

Africa’s banking market is one of the fastest growing, second-most profitable of any global region, and a hotbed for innovations. Fintech has a key role to play in enabling and promoting development of financial sector in Africa this includes both financial institutions and digital banking platform providers. An organized regulatory environment in a developing market is crucial for both generating mobile financial services and reducing the potential downsides.

What started as an idea to generate a regulatory sandbox concept, has evolved into a more structured initiative with an objective to create a network of regulators who collaborate with a single aim of laying out policy details and conduct innovative regulatory trials.

Let’s start by understanding what a regulatory sandbox is.

What is Regulatory Sandbox?
A Regulatory Sandbox is a framework by regulators that allows small scale, live testing of innovations by companies in a controlled environment so as to avoid the financial risks and liability.