The Non-Bank Financial Institutions Regulatory Authority (“NBFIRA”) Chief Executive Officer (“CEO”) Mr. Oduetse A. Motshidisi delivered a presentation on the topic “Regulation as A Key Driver of Innovation In African Capital Markets- Key Lessons From Other Markets” at the 27th Annual African Securities Exchanges Association (ASEA) Executive Committee and Conference 2024.
Mr. Motshidisi highlighted the Regulatory Authority’s mandate and its endeavour to strike a delicate balance between regulating and supervising on one hand and easing regulatory burden on the other hand in order to foster innovation in fast-moving and unpredictable developments in the financial sector.
The presentation drew special attention to the innovation that occurs when enterprises introduce new methods or ideas in their businesses, so to maintain or achieve a competitive advantage. “In financial services, new technologies have been the key innovation catalysts at a faster pace than ever before and it leads to greater efficiency or improved processes of doing business”, said Mr. Motshidisi.
Mr. Motshidisi elaborated on how regulation creates a secure environment for operations and innovation to develop, how it promotes overall market development and ensures market viability. Mr Motshidisi emphasised that regulation protects property rights, accommodates controlled trial and error and most importantly learns and conforms to international standards and best practices.
The importance of lessening potential incidences of financial loss and erosion of confidence through applying oversight to mitigate risks, protect consumers and maintain confidence within the regulated sector and its stakeholders is another important element that he emphasised. “There is need to establish close engagement with the market to avert unintended harmful practices and non-compliance to the set guide rails, and most importantly establish close cooperation among regulators where innovative developments cut across mandates of multiple regulators”, Mr. Motshidisi said.
In closing, the Mr. Motshidisi elaborated on expectations of regulators to promote market development, and advised of the upcoming strategy on Financial Sector Development in Botswana is likely to focus on capital market development.
