Attorney-General and Minister of Justice, Godfred Yeboah Dame, has stressed the urgent need for reform in Africa’s legal frameworks regarding international arbitration.
He noted that the shifting business landscape on the continent and the increasing reliance on alternative dispute-resolution mechanisms in commercial contracts necessitate a comprehensive review of current practices.
While acknowledging the impact of arbitration on African economies, he warned that the system’s inherent secrecy and the binding nature of its awards could lead to fraud and exploitation.
During a keynote address at the African Regional Forum at the International Bar Association’s annual conference in Mexico City on September 19, 2024, Mr. Dame expressed concern that some companies, unable to prevail in African domestic courts, often find success in international arbitration, frequently through agreements lacking proper sanction from African nations.
He criticized the opaque and rigid nature of international arbitration, which usually takes place outside Africa, favoring locations like London, Paris, and New York.
This practice sidelines African arbitrators and hampers the development of arbitration expertise on the continent, exemplified by a recent case in which Nigeria faced an arbitration award of over $11 billion, later overturned by the London High Court.
In addition to calling for reform in arbitration laws, Dame urged global leaders and legal regulators to reassess cross-border law practice regulations.
He argued that as law becomes increasingly globalized, legal professionals should operate beyond their home countries without being hindered by local licensing rules.
He further highlighted the implications of the African Continental Free Trade Area (AfCFTA) for legal practice, asserting that its success hinges on the collaboration of legal professionals across Africa and emphasizing the need to support AfCFTA’s Dispute Settlement Body through adequate training for African lawyers.
