On 6 March 2017, Angola deposited its instrument of accession to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (NYC). One of the significant provisions of the NYC is the obligation on contracting states to recognise arbitral awards issued in another contracting state. In practice, this ensures that an arbitration award can be easily enforced around the world.  It also requires the national courts of contracting states to refer disputes to arbitration where a valid arbitration agreement exists between the parties.  Under the principle of reciprocity set forth in Article 1(3) of the NYC, Angola made a reservation pursuant to which the Convention will only apply to the recognition and enforcement of awards issued in the territory of another Contracting State.

The Convention entered into force in Angola on the 4 June 2017, on the 90th day after the above mentioned deposit, as required by art. XII, paragraph 2 of the NYC – after the official information of the Secretary General of the United Nations.

Notably, the accession to the NYC was approved on the 12 August 2016 by Resolution of the National Assembly No. 38/16, thus making Angola the 157th contracting party to the NYC and the 34th in Africa. This accession enables foreign arbitral awards issued in another signatory States to be recognized as binding and enforced in Angola, with waiver of foreign judgment review and confirmation procedure. Conversely, it is also great news for domestic Angolan businesses, as it means that they can have their international arbitration awards recognised and enforced in other contracting states.

Procedure for the Recognition and Enforcement of the Foreign Arbitral Awards:

• The procedure for the Recognition and Enforcement of the Foreign Arbitral Awards starts with the delivery of the initial application at the Supreme Court;
• The initial application must be delivered with a copy of the decision that shall be recognized and enforced as well as with a copy of the arbitration agreement;
• Thereafter, the opposing party will be cited to submit a statement of opposition within 10 days;
• After concluding the necessary diligences, both parties will be cited to present their allegations;
• Discussion and Judgment phase.

Although belated, the acession by Angola to the NYC is praiseworthy because it will (in principle) provide greater legal certainty to international businesses and assurances to foreign investors that Angola in indeed open for business. This is particularly important as Angola’s government is taking steps to encourage diversification in its economy from an oil-dependent economy and is looking further afield for investment.

As one of the fastest growing economies, Angola needs to harmonise the provisions of the Voluntary Arbitration Law (Law 16/03 of 25 July) and the Angolan Civil Procedure Code with her Convention obligations.