Letter to the Editor - Investors win a small battle, but the war is still ongoing |18 September 2019

This paper already reported on the challenges foreign investors are facing when attempting to invest in Seychelles. In a report by a reputable UK news journal, lack of legal protection was one of the key factors that pushed foreign investors away. This is a very broad term that encompasses things such as lack of international treaties, inconsistent court system that is heavily influenced by politics and corruption in general.

But recently some major events have taken place and the big bureaucratic machine started spinning its wheels.

International treaties are very important for both country and investors. One of the key treaties is the Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958 known as “New York Convention”. This convention governs, as the name suggests, enforcement of foreign arbitral awards. Foreign arbitration is very important for investors as it offers fast and unbiased way to solve disputes.

For over 5 years there were talks among ministries of signing the treaty, but to this day no action was ever taken. Now that the National Assembly decided to look into this matter the Government suddenly started to take steps.

In a letter sent to the National Assembly (published on the NAS website), Ministry of Foreign Affairs finally confirmed that in the upcoming Cabinet the government will finally decide to sign the treaty.

This is a major win for investors. But this is just a small battle in a much larger war as there is still a long way until Seychelles becomes a favourable investment destination.

E. H.

Disclaimer

The views expressed in this letter are those of the author and do not necessarily represent the views of the Seychelles NATION newspaper.