We recently discussed use of regulatory sandboxes in Africa.
What is a regulatory sandbox, you may ask? Simply put, a regulatory sandbox is a system that allows an innovator especially in the digital or tech sector to test their idea in an unregulated environment but within the control of the regulator.
Lets take an example. Consider, a case where someone has developed a money transfer app. The regulators will ideally make sure that users of the app are protected, and that the app complies with all relevant regulations in a country. But, in most cases, the regulators may not even understand how the app works. A regulatory sandbox would allow the app developer to run their app without any specific regulations applying to them as both the regulator and the developer study its functioning.
The regulator then is able to pass rules that effectively regulate the app. This is simply how regulatory sandboxes would work. Use of a regulatory sandbox serves both the regulator and the developers. Several countries in Africa have passed rules on use of sandboxes. For example, Kenya and Nigeria have such rules.
Our panelists in this discussion on use of regulatory sandboxes in Africa look at among other things:
- Why use of regulatory sandboxes is important?
- Some lessons that may be learnt from lack of sandboxes in Africa.
- Things that African regulators should consider in developing regulations on sandboxes.
You can listen to the discussion on YouTube. We also welcome your comments on our social media pages. You could also look out for our future discussion on this topic.
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