Tanzania Accelerates Arbitration Push to Bolster Investment and Economic Growth

DAR ES SALAAM: The Tanzanian government is intensifying its commitment to establishing arbitration as the primary mechanism for resolving commercial disputes, a strategic move aimed at attracting increased investment, curtailing legal expenditures, and preventing protracted court proceedings from derailing critical infrastructure projects. This proactive stance underscores the growing importance of swift and cost-effective dispute resolution in a nation experiencing significant investment inflows across vital sectors such as mining, energy, and transport, all of which are underpinned by complex contractual frameworks.

Ahead of Dar Arbitration Week 2026 and the 8th Tanzania Institute of Arbitrators (TIArb) Annual Arbitration Conference, Mr. David Kakwaya, Assistant Director for Domestic Arbitration in the Attorney General’s Office, strongly advocated for the adoption of alternative dispute resolution (ADR) mechanisms by businesses, investors, and public entities. Kakwaya highlighted arbitration’s inherent cost-effectiveness, noting its capacity to conserve both time and financial resources. He further pointed out that a substantial number of government contracts already incorporate arbitration clauses, signalling a deliberate effort to ensure efficient and equitable dispute settlement. The timely resolution of disagreements, he stressed, is paramount to maintaining the momentum of large-scale investment projects and averting costly disruptions associated with prolonged litigation.

The forthcoming three-day conference, commencing in Dar es Salaam on Tuesday, is poised to convene over 300 delegates. This distinguished assembly will include government officials, judges, seasoned arbitrators, legal practitioners, investors, and representatives from financial institutions and the broader private sector. Under the overarching theme, “Arbitration in the Era of Sustainable Development: Balancing Natural Resources, Investment and Infrastructure Development,” the forum will delve into arbitration’s role in supporting Tanzania’s expanding economy and reinforcing legal certainty for investors.

Mr. Aderickson Njunwa, President of TIArb, articulated that efficient dispute resolution directly fuels economic growth by enabling businesses to operate without prolonged interruptions. He further emphasised arbitration’s value in preserving crucial business relationships, a critical advantage in commercial transactions that depend on sustained partnerships. Njunwa affirmed Tanzania’s development of a robust cadre of qualified arbitrators adept at managing disputes involving both multinational corporations and small to medium-sized enterprises.

The escalating demand for specialised arbitration services, as noted by conference organisers, mirrors the surge in foreign direct investment, rapid expansion in construction, mining, energy, and real estate, and increased public investment in infrastructure. Discussions at the conference are slated to cover investment treaty arbitration, construction disputes, the extractive industries, government capacity building, and the integration of technology in dispute resolution processes. The government views arbitration as a cornerstone of its strategy to enhance the investment climate, believing that predictable and efficient dispute resolution will fortify investor confidence and advance Tanzania’s aspiration to become a preeminent regional arbitration hub for East and Central Africa.

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