Presented by Yared Haile-Meskel at the 4th Annual East Africa Finance Summit The world is changing and the minds of regulators has to change

1. By Yared Haile-Meskel MSc, MPhil, MBA
Empowering Solutions
http://www.yhm-consulting.com
O924039168
yared@yhm-consulting.com
Regulation and Innovation

2. What would have happened?
What if they were born in Ethiopia?

3. On-board on 4th (Industrial) Revolution
• We missed the Agricultural Revolution
• (3000 years old painting, Egypt)
• Missed the Industrial Revolution
• We are just 20 years behind the world and we shouldn’t miss the train
2019 Ethiopia

4. The Future is Here
D2D is without cellular
networks – send an email,
a photo or a video via
Bluetooth Low Energy or
Wi-Fi Direct
Amazon delivery using
drones
Rise of the Machines: How computers took over the
stock market. algorithmic or High-frequency trading

5. The Future
Machine Learning
It's pattern recognition, it's
statistical learning, it's predicting
the future, it's artificial intelligence.
Bluetooth 4.2:
Bluetooth Low Energy is latest version of
the short-wavelength UHF radio wave
protocol.
WiGig
Gigabit Wi-Fi High-speed
wireless data transfer WiGig is
all tied up with the D2D
Graphene
It's super-thin, super-strong and
super-flexible, and it conducts
electricity better than copper, and
heat better than anything.
Expect broadband internet that's a
hundred times faster, flexible phones

6. The Future is Here
Driverless Future “Sophia the AI Robot Has Dinner with
Ethiopian PM” Artificial Intelligence
Betelhem Dessie: A 19-Year-Old Tech Genius at Ethiopia's First AI lab

7. The Future is Here

8. Can we on-board
to fly with 4th Industrial Revolution
• We are just 20 years behind the world and
• we shouldn’t miss the digital revolution
• Google est 1998, 1 trillion
• Apple , est. 1977, 1 trillion billion
• Alibaba, est. 1999, $500 billion
• Amazon, est. 1994, 1 trillion
• Uber, est. 2009, $ 80 billion, ZayRide Ethiopia 2016 (only 6 years younger)
• Skype
• Bitcoin
• Artificial Intelligence (iCog Ethiopia)
• Banking is the Centre of all these things and Banking Regulations can
promote wealth creation or perpetuation of poverty

9. Age of Digital Ubiquity
• The world is changed and the minds of regulators
has to change
• How we can cope with this changing and dynamic
world?
• Are we fit to regulate?
• What it takes to regulate?
• Should regulation remain the killer of innovation?
• Legacy industry, not for digital
• It is ok to make mistakes, no-where the regulators
get it right

10. Lessons to Learn
• All innovation were “illegal”
• All innovation precede regulation
• There was no regulation when car, telephone, bank,
currency, airplane, internet, drones, mobile money was
invented.
• We can’t regulate the future we don’t know
• Don’t impose the legacy low,
• All companies are different

11. Lessons to Learn
• Data is the new oil
• Algorithmic cartel is a threat to for competition
• Regulation – the enemy of innovation
• The 1OO years monopoly of the government over Money
is over
• “Currency creation“ is becoming a private role

12. The Three Regulations
• Self-regulation
– Self-regulation is not the same as deregulation or no
regulation. Rather, it is the reallocation of regulatory
responsibility to parties other than the government.
• Co-regulation and
– Dialogue, working together and developing the regular
framerwork
• Regulation
• For this to happen the National Bank should hire
engineers, programmers, scientists and other experts

13. 4th Time Lucky: Tangibles and Intangibles

14. Thank you
Yared Haile-Meskel
YHM Consulting
yared@yhm-consulting.com
www.yhm-consulting.com
+44924039168