International Commercial Arbitration at Tanzania
Here’s an overview of International Commercial Arbitration in Tanzania:
1. Legal Framework
Tanzania’s arbitration law is primarily governed by the Arbitration Act, 2022 (which replaced the earlier 2009 Act).
The law is largely based on the UNCITRAL Model Law on International Commercial Arbitration (1985), ensuring modern and internationally accepted arbitration standards.
Tanzania is a party to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which supports enforcement of both domestic and foreign arbitral awards.
Tanzania has also ratified the 1958 Washington Convention (ICSID) for investment dispute arbitration.
2. Arbitration Institutions in Tanzania
Tanzania Institute of Arbitrators (TIArb): The leading professional body promoting arbitration and alternative dispute resolution in Tanzania.
Dar es Salaam International Arbitration Centre (DIAC): Established to provide institutional arbitration services for international and domestic disputes.
Parties can also choose international institutions (ICC, LCIA, SIAC) if agreed upon.
3. Key Features
Party Autonomy: Parties have the freedom to select arbitrators, decide on the seat of arbitration, procedural rules, and language.
Neutrality and Confidentiality: Arbitration offers a neutral and private forum outside of national courts.
Enforceability: Awards made in Tanzania or abroad are enforceable under the New York Convention.
Limited Court Intervention: Courts intervene minimally, primarily to assist arbitration (e.g., appoint arbitrators if parties fail to do so, or to enforce awards).
Language: Typically English, but parties can agree otherwise.
4. Arbitral Procedure
Arbitration commences with a notice or request for arbitration as per agreement or institutional rules.
The tribunal is appointed by the parties or an appointing authority.
Arbitration hearings and evidence presentation follow agreed or institutional procedures.
Awards must be in writing and signed by the arbitrators.
5. Recognition and Enforcement
Tanzanian courts generally enforce arbitration agreements and arbitral awards.
Grounds for refusing enforcement are consistent with the New York Convention (e.g., invalid agreement, procedural irregularities, conflict with public policy).
Enforcement can be sought through the courts if the losing party refuses to comply voluntarily.
6. Practical Considerations
Tanzania is increasingly seen as arbitration-friendly, encouraging foreign investment and dispute resolution through arbitration.
Use of DIAC and TIArb is growing, providing better arbitration infrastructure.
Legal representation by Tanzanian lawyers experienced in arbitration is advisable.
Summary
Tanzania’s arbitration framework is modern, aligned with international standards, and supported by institutional and legal reforms aimed at promoting efficient resolution of international commercial disputes. Arbitration offers an effective alternative to litigation for resolving cross-border business disputes involving Tanzanian parties.
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