SENEGAL Law and Practice Contributed by: Aboubacar Fall, AF Legal
1. General 1.1 Prevalence of Arbitration
often administered by institutions such as the ICC, CCJA or ICSID. • Enforcement of foreign arbitral awards – Senegal is a party to the 1958 New York Convention and ratified it in 1994. This facilitates the recognition and enforcement of foreign arbitral awards. Sen - egal has not made any reservations to the general obligations arising from the Convention. Senega - lese judicial practice is generally favourable to such enforcement, subject to compliance with legal conditions. • Seat of arbitration – Although Senegal is not yet a major seat of international arbitration, it aspires to become one. The CAMC is seeking to posi - tion itself as the leading arbitration institution in the Economic Community of West African States(ECOWAS) sub-region. The country’s legal and political stability reinforces this ambition. 1.2 Key Industries Certain industries in Senegal have seen significant international arbitration activity in recent years. Three sectors stand out, in particular: oil and gas, infrastruc - ture and telecoms/tech. Hydrocarbons (Oil and Gas) Since the discovery of significant offshore oil and gas deposits (notably the Sangomar and Grand Tortue Ahmeyim projects), Senegal has become a strategic destination for international investors in the extractive sector. Production sharing agreements, lease agree - ments, and joint ventures between the state, Petrosen (Senegal’s national oil company), and major oil com - panies (Woodside, BP, Kosmos, etc) generally include international arbitration clauses, often under the aus - pices of ICSID or the ICC. The use of arbitration in this sector is due to the political sensitivity of agreements, the large amounts involved, and investors’ desire to avoid local jurisdictions perceived as less neutral. Infrastructure and Public Works Senegal has undertaken a number of major infrastruc - ture projects in recent years – including toll motor - ways, a regional express trainline, an electric bus net - work in Dakar, and a new international airport (Blaise Diagne International Airport). These projects are often the subject of public-private partnerships (PPPs) with foreign operators. In the event of a dispute, the con -
In Senegal, international arbitration is becoming increasingly prevalent as a method of dispute resolu - tion. This trend is supported by the favourable legal environment and the country’s openness to interna - tional investment. For example, Senegal has con - cluded no fewer than 29 bilateral investment treaties (BITs) protecting investors, which demonstrates a desire to encourage a stable and favourable invest - ment climate. Use of International Arbitration by Domestic Parties Domestic parties are increasingly turning to interna - tional arbitration, particularly when contracting with foreign partners. However, in purely domestic dis - putes, recourse to judicial litigation or local institu - tional arbitration (eg, the Arbitration, Mediation and Conciliation Centre of the Dakar Chamber of Com - merce – CAMC) remains common. In international commercial contracts, Senegalese companies generally accept arbitration clauses pro - viding for recourse to international arbitration, often administered by institutions such as: • the ICC (International Court of Arbitration in Paris); • the CCJA, which is the Common Court of Justice and Arbitration for OHADA ( Organisation pour l’harmonisation en Afrique du droit des affaires ), a shared corporate law system across 17 West and Central African countries; or • particularly in investment matters, the International Centre for Settlement of Investment Disputes (ICSID). Basis for the Use of International Arbitration in Senegal International arbitration is used in Senegal mainly for the following reasons. • Contractual choice of arbitration as a means of dis- pute resolution – In many international conventions or international commercial contracts, Senegalese companies generally accept arbitration clauses providing for recourse to international arbitration,
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