Q&A with Dr. Brook Taye

Dr. Brook Taye gives his perspective on the African Fintech revolution and how, as a newly formed entity, the Ethiopian Capital Market Authority (ECMA) has gained valuable insight from other mature markets.

“A regulator acts as a guardian, promoting fairness, transparency, and stability in financial markets. The watchfulness of the regulator guarantees that markets continue to be reliable and supportive of economic expansion.”

Dr. Brook Taye

About Dr Taye

How did you get to where you are?

I have been working in the areas of law, economics, and finance for over two decades. I was fortunate to study in several universities that provide the best training in these fields which helped me to acquire the skill that I needed for a challenging and complex world of law and finance. Working as a civil servant in Ethiopia is one of the proudest moments in my career. As a senior advisor at the Ministry of Finance, I have learned about the various economic challenges and opportunities in the country and was able to work on subject matters that set a foundation for a more vibrant economy. In my current role at the Ethiopian Capital Market Authority, I am leading the effort to establish a new regulator and launching the first securities exchange in the country, which is a major milestone that will help advance the economic progress of Ethiopia.

How do you unwind?

I find books to be a wonderful way to unwind after a long day or a long week. Mainly books that do not necessarily apply to my work on wide-ranging topics help me to disengage.

What inspires you?

In my area of work, the most inspirational aspect is the potential of the capital market to help and support Ethiopia to achieve its growth aspiration. When I see the dislocation of capital from investment prospects and the opportunity, we have at the Capital Market Authority to address this major gap by designing a smart regulation, it inspires me to do my job to the best of my knowledge always reminding myself of the impact of each decision on the future economic progress of Ethiopia. In general, I am inspired by the dynamism and resilience of the people of Ethiopia. Despite the day-to-day multi-faceted challenges, their capacity to absorb any shock and move on is one of the biggest motivations that helps me to do all I can to make their life a little easier and better than yesterday.

What is your advice to the younger generation?

My advice is not to be distracted by the immediate and now, to focus on the long-term, and to do whatever they are doing with the full commitment the job requires. At a very young age, it is very difficult to conclusively know what one wants to do in his/her life. Career choices seem easy but the more you learn and know yourself, the more you discover it takes time to find a career that you would enjoy and want to do every day. Therefore, try various professions, and don’t be afraid to fail because it won’t be too late to change and adapt. Ultimately, you have the advantage of time. Also, find someone who can be your champion, so that you can seek advice and guidance on work or studies. It is very useful to have such a person in your life since at a minimum; they can share life wisdom based on lived experiences I think.

“Global standards play a pivotal role in ensuring frontier and emerging markets have an equal voice alongside developed markets.”

Dr. Brook Taye

What’s on the horizon?

Describe the role and importance of a regulator in ensuring fair and transparent financial markets.

A regulator acts as a guardian, promoting fairness, transparency, and stability in financial markets. The watchfulness of the regulator guarantees that markets continue to be reliable and supportive of economic expansion. Enforcing regulations to prevent excessive volatility, market manipulation, and systemic risks falls under the purview of the regulator, who also plays a crucial role in preserving market stability and advancing equity. Transparency is ensured by regulators who mandate financial institutions to disclose pertinent information to the public. By guaranteeing that investors have access to correct information, transparency promotes trust and well-informed decision-making. Moreover, a regulator in a developing capital market should also support market development by introducing a regulatory sandbox to allow financial innovation.

In an ideal world, how would you shape global standards to ensure frontier, emerging, and developed markets have an equal voice?

Global standards play a pivotal role in ensuring frontier and emerging markets have an equal voice alongside developed markets. To create a level playing field for these different markets, global standards need to consider the following:

• An Equitable Market Classification Regime – I would ensure that there is a more equitable market classification system that would consider unique attributes of different markets outside of the commonly used factors such as Economic Development, Market Size and liquidity.
• Market Accessibility – To promote a level playing field, I would ensure investors have equal access to all markets.
• Risk vs Reward Assessment – Global standards guide investors in assessing risk-reward trade-offs and making informed decisions. Risks for Emerging and frontier markets are sometimes convoluted or overstated. I would ensure a common framework where risks from all markets are seen with the same lens and evaluated objectively.

What are the key emerging regulatory trends and how are you as an organization addressing these new risks to remain effective?

In the broader context of capital markets, emerging issues include cyber resilience, fintech, and climate change. With so many rapidly changing technological advancements and the exponential growth of AI (Artificial intelligence) applications, regulators around the world are focusing on emerging technology. As a newcomer, the Ethiopian Capital Market Authority (ECMA) has been fortunate enough to gain valuable insight from other mature markets on how to address risks from these emerging technologies. ECMA is also working with the IFC and other governmental agencies in incorporating ESG provisions in the country’s corporate governance standards.

What does the future of financial services in Africa look like?

Africa’s financial landscape is evolving rapidly, driven by technology, innovation, and a commitment to financial inclusion. The African Fintech revolution is well underway with more and more of the population moving from a cash-based economy to mobile payment solutions tailored for Africa by Africans. The future holds immense promise for accessible, efficient, and inclusive financial services across the continent. With a significant advantage of having a young population and an upside on economic growth potential, if properly developed, the outlook is promising.

This profile forms part of Bloomberg’s Regulatory Affairs insights series and is independent of Bloomberg News.