Arbitration In Africa

Arbitration is the most popular means by which international trade and investment disputes are settled around the world today.  Africa is no exception.  Arbitration typically is the dispute resolution method of choice for those investing in the continent and the growing rates of foreign direct investment into Africa underline its presence.

However, in parallel, the continent has also seen an increase in domestic or intra-Africa disputes being resolved by arbitration.  Arbitration is no longer the preserve of inward investors, large multinationals or Governments and their state bodies.  It services all levels of the commercial market and its use continues to grow at an exponential rate.

The reasons for its popularity are evident.  Whilst a procedure that results in a binding award, similar to a court judgment, arbitration is a product of consent.  Parties to an arbitration are therefore able to tailor-make the process to suit their needs.  And so issues such as the applicable governing law, the applicable procedural law, the number, identity, nationality, qualifications and experience of the arbitrators, the language of the proceedings, the venue of the hearing and many other features can all be specified.  Coupled with the confidentiality of any outcome and the fact that arbitration awards, in principle, are more easily enforced than court judgments in foreign jurisdictions, it is clear to see why arbitration is seen as the preferred option for cross-border disputes.

Any industry event will underscore the appetite for using arbitration within Africa.  The continent has seen a proliferation of domestic arbitration centres and local arbitrators.  The global arbitration community is invested in growing arbitration in Africa and renowned institutions like the International Chamber of Commerce (ICC) have invested significant time and resource in promoting the use of arbitration on the continent.

With the arrival of the African Continental Free Trade Area (AfCFTA), cross-border business is predicted to grow significantly.  Arbitration is the natural partner to such business and so its growth is set to increase yet further.  Whilst the attractiveness of arbitration must always be assessed by reference to the systems of each of Africa’s 54 states, few states and their domestic judiciary are not already alive to the need to foster and support arbitration. 

And yet, despite all of the above, NAS is one of the few, if not the only, international Africa-based consultancy dedicated solely to serving the arbitration markets in Africa.  We are leaders in what we do.  Get in contact if you wish to learn more.