AG Chakaka-Nyirenda calls for stronger arbitration reforms at Lusaka Arbitration Week

Attorney General Thabo Chakaka Nyirenda has called for stronger regulations and legislative reforms to address key challenges in the international arbitration.

He made these sentiments at the ongoing Lusaka Arbitration Week in Zambia.

He highlighted concerns about investors frequently demanding that disputes be resolved outside the host country or even Africa arguing that local arbitration would affect the bankability of investment.

“They bulldoze host countries into submitting to arbitration taking place in Western cities,” he said.

He has since challenged this notion, emphasising the need to build trust in Africa arbitration institution to resolve disputes fairy and effectively.

Reflecting on the Nigeria vs Process and industrial development Limited case, where an arbitration award was overturned due to fraud and public policy issues, Nyirenda raised serious concerns about the conduct of legal representatives in that case.

“The lawyers for both the claimant and the Nigerian government were involved in what I could term match-fixing as they mounted a very weak defence in instances where legal terms mount poor defenses,” Nyirenda highlighted.

The Attorney General also pointed to legislative gaps in Malawi’s Public Private Partnership Act which mandates that disputes be governed by Malawian law but doesn’t require arbitration to occur within Malawi or Africa therefore in contrast Zambia’s Solicitor General mandates local arbitration shouldn’t such requirements be enshrined in law to safeguard national interest.

Another critical issue raised was double-hatting where lawyers act as arbitrators in some cases while serving as legal representatives in others, creating potential conflicts of interest. He emphasized the need for regulation to preserve ethical standards and impartiality in arbitration proceedings.

In conclusion, the Attorney General expressed concerns over the poor quality and weak reasoning of some arbitration awards which in some instances force courts to intervene and set aside decision, therefore he has called for higher standards and accountability in awards writing to uphold the credibility of the arbitration process.

As discussion continue at the Lusaka arbitration week, the Attorney General remarks have sparked vital conversations about the future of arbitration in Africa with calls for legislative and institution reforms to strengthen dispute resolution mechanisms and protect public resources across the continent.

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