Sovereign Guarantees | In Conversation w/ Gadi Taj Ndahumba

This video features an interview with Gadi Taj Ndahumba, Chief Legal Counsel at the African Legal Support Facility (ALSF), and focuses on the use of sovereign guarantees on the African continent. The conversation extends far beyond the standard talking points about sovereign guarantees reducing offtaker risk and enhancing project bankability, and Gadi offers important insight into governments’ perspectives on the use of this tool. We discuss how use of sovereign guarantees may affect the perception of a government’s financial position and ability to raise debt, unique considerations for public finance in Sub-Saharan Africa, whether a sovereign guarantee represents a direct or contingent liability, and the difference between an implicit and explicit contingent liability. This conversation will be especially valuable for private sector investors and IPPs who are interested in better understanding the government perspective on this de-risking tool.
If you’d like to be put in touch with Gadi, please reach out to the Pivotal180 team at [e-mail]
www.alsf.int/a...
For more materials on sovereign guarantees, check out Pivotal180’s blog series on the topic:
pivotal180.com...

[@classics1507]

Very nice session. I have a question: What if Foreign Reserves of the Government are very limited and there is a liability of the Sovereign Guarantee. How the Government will pay off to IPPs? Like will there be some Assets that will be disposed off to pay the Sovereign Guarantees?