Malawi’s Attorney General Nyirenda urges Africa to embrace Arbitration for Economic Growth
Malawi’s Attorney General, Thabo Chakaka Nyirenda, has called on African nations to adopt arbitration as a key mechanism for resolving commercial disputes, citing its potential to boost economic development and reduce reliance on traditional courtroom litigation.
Nyirenda, who was invited as Guest of Honour at the 11th East Africa International Arbitration Conference, praised Ethiopia’s arbitration law and regional arbitration centers for promoting economic growth.
He specifically commended Ethiopia’s new arbitration law, the Arbitration and Conciliation Working Procedure Proclamation Number 1237/2021.
“Ethiopia’s arbitration legislation aptly summarizes the benefits of establishing Alternative Dispute Resolution and Conciliation, namely complementing the right to justice and contributing to the resolution of investment and commercial-related disputes,” Nyirenda said.
Nyirenda highlighted Malawi’s efforts to establish its own international arbitration center, the Malawi International Arbitration Centre (MIAC), and ratify the New York Convention. Malawi became the 167th Contracting State to the 1958 New York Convention in June 2021.
“Commercial arbitration achieves fairness and justice, expeditiously and economically,” Nyirenda emphasized.
“Arbitration complements the court system, reducing legal risks and enhancing the rule of law. It’s a potentially more efficient and attractive mechanism for resolving commercial disputes.”
Nyirenda noted that traditional litigation in national courts can be costly, time-consuming, and inefficient, obstructing rather than facilitating the resolution of business disputes.
He cited estimates suggesting that resolving disputes through national courts can increase the price of international contracts by up to 50%.
“Arbitration reduces legal risks associated with trade, investment, and business,” Nyirenda said. “It provides a certain level of predictability in how a matter will be resolved, and disincentivizes vexatious or frivolous disputes.”
The conference, held at the Sheraton Addis Hotel, brought together legal experts, business leaders, and government officials from across East Africa to discuss the role of arbitration in promoting economic development.
As Guest of Honour, Nyirenda’s presence underscored Malawi’s commitment to alternative dispute resolution and its potential to drive economic growth.
He emphasized the need for African countries to work together to establish a seamless continental arbitration framework.
“Africa must find African solutions to African problems,” Nyirenda stressed.
“We must seize every opportunity to share experiences and lessons to facilitate collaborative efforts in consolidating and building the standard for making the region and the continent a place to go for the resolution of international commercial and investment disputes.”
Dr. Ermias Yemanebirhan, Ethiopia’s State Minister of Justice, and Justice Nestor Kayobera, President of the East African Court of Justice are also attending the conference.
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