International Commercial Arbitration at Madagascar

Certainly! Here’s a clear overview of International Commercial Arbitration in Madagascar:

International Commercial Arbitration in Madagascar

Legal Framework

Madagascar’s arbitration law is primarily governed by the OHADA Uniform Act on Arbitration since Madagascar is a member of OHADA (Organization for the Harmonization of Business Law in Africa).

The OHADA Uniform Act is a comprehensive and modern arbitration statute that applies to member states and is inspired by the UNCITRAL Model Law.

Madagascar is also a party to the New York Convention (1958), facilitating the recognition and enforcement of foreign arbitral awards.

Key Features

AspectDetails
Governing LawOHADA Uniform Act on Arbitration
ApplicabilityApplies to both domestic and international arbitration
Arbitration AgreementMust be in writing, as per OHADA requirements
Number of ArbitratorsUsually one or three, per parties’ agreement or default rules
LanguageParties may agree on the language of arbitration (French is common)
Court InterventionLimited to support functions such as appointment of arbitrators, enforcement, and setting aside awards
Recognition & EnforcementSupported by Madagascar’s ratification of the New York Convention

Arbitration Institutions

Madagascar does not have a very developed local arbitration institution specializing in international commercial arbitration.

Parties often choose arbitration centers outside Madagascar such as:

International Chamber of Commerce (ICC)

OHADA Regional Arbitration Center

Other international arbitration bodies (e.g., SCC, LCIA)

Arbitration Procedure

Arbitration Clause
Parties must include an arbitration clause in their contract or a separate arbitration agreement.

Commencement
Arbitration is initiated by a notice of arbitration as per the arbitration agreement.

Arbitrator Appointment
Parties appoint arbitrators; if they fail, courts may intervene as per OHADA rules.

Proceedings
Flexible and party-driven; hearing and evidence rules are generally governed by the arbitration agreement or OHADA Uniform Act.

Arbitral Award
Final and binding; enforceable in Madagascar and abroad under the New York Convention.

Practical Considerations

Language: French is the official legal language and the most used in arbitration.

Judicial Support: Courts in Madagascar generally support arbitration by minimizing interference but can assist with enforcement or annulment requests.

Developing Market: International commercial arbitration is still emerging in Madagascar, so parties often prefer regional or international arbitration institutions.

Legal Counsel: It’s advisable to work with lawyers experienced in OHADA law and international arbitration.

Summary

Madagascar follows OHADA’s arbitration framework and the New York Convention for international commercial arbitration, providing a legal environment supportive of arbitration. Although local institutions are limited, parties can rely on OHADA rules and international arbitration centers to resolve disputes efficiently.

 

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