NewzThe Ethiopian government has implemented a new legal framework that empowers the Ministry of Finance to issue sovereign guarantees to investors involved in strategic projects. This policy allows the federal government to provide binding compensation commitments, effectively assuming liability for financial losses that may arise from state actions or project defaults.
The initiative is designed to enhance the bankability of large-scale investments within the country. By mitigating risks associated with government-related disruptions, the framework aims to attract greater private sector participation in key economic sectors.
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