Participation in the Regulatory Sandbox is contingent upon meeting specific criteria that ensure alignment with the sandbox’s objectives and regulatory frameworks. Our eligibility criteria are designed to identify firms that are not only prepared to leverage the unique environment of the sandbox but also capable of contributing to the financial sector’s evolution in Ethiopia. The following criteria must be met by all applicants:
The proposed financial service, product, or technology must directly benefit consumers within Ethiopia, addressing specific needs in the financial market. This includes innovations aimed at enhancing financial inclusion, improving service delivery, increasing market efficiency, or providing other measurable benefits to the consumer base.
Applicants must demonstrate that their financial service, product, or technology is either new or significantly different from existing solutions in the Ethiopian market. The innovation should introduce novel approaches or technologies that have the potential to alter the financial landscape, offering substantial improvements over current methods.
The proposed solution must clearly articulate the advantages it offers to users, which could include improvements in financial security, user experience, cost efficiency, or access to financial services. Special consideration is given to solutions that support small and medium-sized enterprises (SMEs) and startups, which are vital to the Ethiopian economy.
The application must make a compelling case for why the sandbox environment is essential for the testing of the proposed innovation. This includes the need for regulatory flexibility, the potential for learning about the product’s interaction with existing regulations, and the benefits of close guidance from regulatory bodies.
The firm must demonstrate readiness to commence testing with real customers in a live market environment within a short time frame after acceptance into the sandbox. This includes having a developed product or service, the necessary technical and operational infrastructure, and compliance measures in place to protect participants. Applicants are requested to demonstrate their preparedness for the proposed testing by providing evidence of their Minimum Viable Product, key policies and procedures designed to ensure consumer protection, established partnerships, adequate resources to undertake the test, customer engagement and onboarding procedures and a valid certificate of commercial registration.
While the sandbox provides a controlled regulatory relief, all participants must still comply with overarching legal and regulatory standards that are not waived for the sandbox testing. This ensures that the testing activities maintain the integrity and stability of the wider financial system.
