Arbitration Law in Mozambique
Arbitration in Mozambique is governed by the Law on Arbitration, Conciliation, and Mediation (Law No. 11/99 of 8 July 1999). This law establishes the legal framework for resolving disputes outside of court, promoting arbitration as an alternative dispute resolution (ADR) method. Additionally, Mozambique is a signatory to international treaties, such as the New York Convention (1958), which facilitates the recognition and enforcement of foreign arbitral awards.
Key Aspects of Mozambique’s Arbitration Law
1. Legal Framework
- Law No. 11/99 (1999) governs arbitration, conciliation, and mediation in Mozambique.
- The law is influenced by UNCITRAL Model Law, ensuring international best practices.
- Mozambique has ratified the New York Convention (1958), making it easier to enforce foreign arbitral awards.
- Arbitration is commonly used for commercial disputes, investment matters, and construction contracts.
2. Types of Arbitration
- Domestic Arbitration: When both parties are from Mozambique and the arbitration takes place within the country.
- International Arbitration: If the dispute involves foreign parties, assets abroad, or international contracts.
- Institutional & Ad Hoc Arbitration:
- Parties can choose arbitration administered by an institution or proceed with ad hoc arbitration (following mutually agreed-upon rules).
3. Arbitration Agreement
- Must be in writing and clearly specify that disputes will be resolved through arbitration.
- Can be included as an arbitration clause in a contract or as a separate agreement.
- Courts respect arbitration agreements unless they are proven to be invalid (e.g., signed under fraud or coercion).
4. Arbitral Tribunal
- Parties are free to appoint arbitrators.
- If no agreement is reached on the number of arbitrators, the default rule is three arbitrators.
- Arbitrators must be independent and impartial.
- Foreign arbitrators are permitted.
5. Arbitration Process
- Parties can decide the language, procedures, and governing law.
- In the absence of specific rules, the tribunal follows the procedures set by Law No. 11/99.
- Arbitration is confidential, ensuring privacy for business disputes.
- The tribunal has the power to issue interim measures (e.g., asset freezes, injunctions).
6. Arbitral Awards
- Final and binding: Once an arbitral award is issued, it has the same force as a court judgment.
- Must be in writing and signed by the arbitrators.
- Limited grounds for challenging an award in court, such as:
- Lack of jurisdiction
- Violation of public policy
- Serious procedural irregularities
7. Recognition & Enforcement of Arbitral Awards
- Domestic awards are enforceable like court judgments.
- Mozambique, as a signatory to the New York Convention, enforces foreign arbitral awards unless they:
- Violate Mozambican public policy.
- Were issued without due process.
- Exceed the scope of the arbitration agreement.
Key Arbitration Institutions in Mozambique
- CACM (Centro de Arbitragem, Conciliação e Mediação) – Mozambique’s main arbitration center.
- Mozambique’s Investment Promotion Agency (APIEX) – Involved in investment dispute resolution.
- International institutions such as the ICC (International Chamber of Commerce) and the LCIA (London Court of International Arbitration) are often used for complex disputes.
Conclusion
Mozambique has a pro-arbitration legal framework that encourages alternative dispute resolution, especially in commercial and investment matters. The 1999 Arbitration Law provides flexibility for parties, and Mozambique’s commitment to the New York Convention ensures international recognition of arbitral awards.
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