Arbitration in Mozambique’s legal system

General legislation, special regimes and international instruments

Law No. 11/99 of 8 July governs arbitration, conciliation and mediation in Mozambique. It provides the general arbitration framework and specific provisions for international commercial arbitration. In areas governed by special regimes, the general law applies on a subsidiary basis under Article 5(3). Identifying the applicable framework therefore starts with the legal relationship and the subject matter of the dispute.

The law recognises party autonomy while requiring safeguards including equality, an opportunity to be heard, impartiality and independence. Flexibility allows the procedure to be tailored; it does not permit a party to be denied a fair opportunity to present its case.

Domestic, international and investment arbitration

Article 52 links internationality to international trade interests and connections such as the parties’ places of business, the seat of arbitration and the place where a substantial part of the obligations is performed. A shareholder’s nationality or foreign wording in a contract does not, by itself, settle the classification. An international arbitration may be seated in Mozambique.

Commercial arbitration concerns commercial relationships. Investment arbitration may be based on a treaty, legislation or a contract, depending on consent and the requirements of the instrument invoked. A contract with the State does not automatically turn every breach into a violation of an investment treaty.

Seat, institution, language and applicable law

The seat connects the arbitration to a legal system. It must be distinguished from the physical hearing venue and the institution administering the arbitration. Article 27 permits procedural activities elsewhere on the terms it sets out. Choosing a foreign institution does not necessarily mean choosing a foreign seat.

Article 34 addresses applicable law and decision-making in equity under the general regime. For international commercial arbitration, Article 54 recognises the choice of rules of law governing the merits; absent a choice, the tribunal applies the law designated by the conflict-of-laws rules it considers applicable. A reference to a country’s law ordinarily means its substantive law. Decision-making in equity requires express authorisation. Article 56 permits the parties to agree on the language or languages of the international proceedings.

Mozambique’s participation in international conventions

Mozambique acceded to the New York Convention on 11 June 1998; it entered into force for Mozambique on 9 September 1998. The recorded reservation is reciprocity: application to awards made in another Contracting State. The Convention addresses arbitration agreements and the recognition and enforcement of awards within its scope.

Mozambique signed the Washington Convention on 4 April 1995, deposited its ratification on 7 June 1995 and became bound on 7 July 1995. Membership does not constitute consent to every ICSID arbitration: written consent and the jurisdictional requirements of Article 25 must be established.

The UNCITRAL Model Law is a legislative model for States, rather than a treaty or directly applicable legislation by that name. Comparison is useful, but Law No. 11/99 must be read on its own terms. Soft-law instruments, including the IBA Rules on Evidence and Guidelines on Conflicts of Interest, can assist practice through agreement, procedural decisions or specific statutory reference. They do not override mandatory rules.