Govt pushes arbitration to spur investment

DAR ES SALAAM: THE government is stepping up efforts to make arbitration the preferred avenue for resolving commercial disputes as it seeks to attract more investment reduce legal costs and ensure major infrastructure projects are not stalled by lengthy court battles.

The government says faster, less costly dispute resolution is becoming increasingly important as the country records rising investment in mining, energy, transport and other strategic sectors that rely on complex commercial contracts.

Speaking ahead of Dar Arbitration Week 2026 and the 8th Tanzania Institute of Arbitrators (TIArb) Annual Arbitration Conference, Assistant Director for Domestic Arbitration in the Attorney General’s Office, Mr David Kakwaya, urged businesses, investors and public institutions to embrace alternative dispute resolution mechanisms.

“Alternative dispute resolution is cost-effective because it saves both time and financial resources,” Kakwaya said, noting that many government contracts already include arbitration clauses to provide efficient and balanced settlement of disputes.

He said timely resolution of disagreements is critical to ensuring that large-scale investment projects proceed without costly disruptions caused by prolonged litigation.

The three-day conference, which opens in Dar es Salaam on Tuesday, is expected to bring together more than 300 delegates, including government officials, judges, arbitrators, legal practitioners, investors and representatives from financial institutions and the private sector.

Organised under the theme “Arbitration in the Era of Sustainable Development: Balancing Natural Resources, Investment and Infrastructure Development,” the forum will examine how arbitration can support Tanzania’s expanding economy while strengthening legal certainty for investors.

TIArb President, Mr Aderickson Njunwa said efficient dispute resolution contributes directly to economic growth by allowing businesses to continue operating without lengthy interruptions.

“Quick settlement of disputes contributes to a healthy economy because businesses are able to continue operating without prolonged interruptions,” he said.

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Mr Njunwa added that arbitration also helps preserve business relationships, making it particularly valuable for commercial transactions where long-term partnerships are essential.

He said Tanzania has built a growing pool of qualified arbitrators capable of handling disputes involving both multinational corporations and small and medium-sized enterprises.

Conference organisers said demand for specialised arbitration services has risen alongside increased foreign direct investment, rapid expansion in construction, mining, energy and real estate, and growing public investment in infrastructure.

Delegates will discuss investment treaty arbitration, construction disputes, extractive industries, government capacity building and the use of technology in dispute resolution.

The government sees arbitration as a key pillar of improving the investment climate, arguing that predictable and efficient dispute resolution will strengthen investor confidence and reinforce Tanzania’s ambition to become a regional arbitration hub for East and Central Africa.

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