International Commercial Arbitration at Cape Verde
Certainly! Here’s a focused overview of International Commercial Arbitration in Cape Verde:
International Commercial Arbitration in Cape Verde
1. Legal Framework
Cape Verde’s legal system is based primarily on Portuguese civil law, with influences from Portuguese arbitration legislation.
Cape Verde has enacted a national Arbitration Law, which is largely modeled after the UNCITRAL Model Law on International Commercial Arbitration (1985). This law provides a modern legal framework for arbitration, covering arbitration agreements, the conduct of arbitration, recognition and enforcement of arbitral awards, etc.
The Arbitration Law applies to both domestic and international commercial arbitration.
2. New York Convention
Cape Verde is a signatory to the New York Convention (Convention on the Recognition and Enforcement of Foreign Arbitral Awards, 1958) since 2008.
This is crucial for international arbitration because it facilitates the enforcement of foreign arbitral awards in Cape Verde and Cape Verdean awards abroad.
3. Arbitral Institutions
Cape Verde does not have a prominent domestic arbitration institution like ICC, LCIA, or SIAC.
Disputes are often resolved via ad hoc arbitration or through foreign institutions selected by the parties.
The Cape Verdean courts can assist with arbitration proceedings and enforce arbitral awards.
4. Court Support and Enforcement
Courts in Cape Verde generally support arbitration, respecting the parties’ autonomy and upholding arbitration agreements.
Judicial authorities provide assistance in:
Appointing arbitrators (when parties fail to agree),
Granting interim measures,
Enforcing arbitration agreements and awards.
Courts can set aside arbitral awards only under limited grounds, consistent with the UNCITRAL Model Law.
5. Practical Considerations
Arbitration clauses in contracts involving Cape Verdean parties typically specify either:
Arbitration under Cape Verdean law with ad hoc arbitration,
Or arbitration seated in a neutral jurisdiction (e.g., Lisbon, Paris, or London) with an international institution.
Given the Portuguese influence, many arbitration agreements involving Cape Verde refer to Portuguese law and institutions.
6. Advantages of Arbitration in Cape Verde
Flexibility and party autonomy in dispute resolution.
Confidentiality and neutrality.
Access to international enforcement mechanisms (via New York Convention).
Supportive judicial framework aligned with international arbitration standards.
7. Challenges
Limited local arbitration institutions and expertise.
Arbitration practice is still growing compared to larger jurisdictions.
Language can be a factor — Portuguese is the official language, which parties should consider in drafting agreements.
Summary
Cape Verde offers a modern and internationally aligned arbitration framework for resolving international commercial disputes. Its accession to the New York Convention strengthens the enforceability of arbitral awards, making it a viable jurisdiction for arbitration in West Africa, especially for parties from Portuguese-speaking countries.
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