Unveiling the contemporary arbitration regime in Tanzania: Anecdotes worth sharing, prospects and challenges

• Author: Kimela, H.
• DOI: https://doi.org/10.47348/JCCL/V7/i2a5
• Published date: 09 November 2022
• Date: 09 November 2022
• Citation: (2021) 7(2) JCCL&P 101
• Pages: 101-121

https://doi.org/10.47348/JCCL/V7/i2a5

101

UNVEILING THE CONTEMPORARY

ARBITRATION REGIME IN

TANZANIA: ANECDOTES WORTH

SHARING, PROSPECTS AND

CHALLENGES

HASSAN KIMELA*

Tutorial Assistant, LLM Candidate, Faculty of Law, Mzumbe University

JULIUS COSMAS†

Senior Lecturer in Law, Mzumbe University

Abstract

This article critically discusses the new changes brought about by

Tanzania’s new Arbitration Act 2 of 2020 of Tanzania and its regulations

and their implications for domestic and international arbitration

and other related laws. The article finds that the establishment of

the Tanzania Arbitration Centre; the requirement for accreditation of

arbitrators; the introduction of a code of conduct for arbitrators; the

ability of international arbitral tribunals to arbitrate investor–state

disputes; the introduction of qualified immunity; and clarification of

other grey areas are a long-awaiting milestone. The article also argues

that the changes will have enormous and far-reaching implications

on the arbitration framework in Tanzania, including propelling cross-

border commerce and investments. It is further argued that despite

its prospect, some areas in the novel arbitration regime need to be

revisited to create a more credible framework for both international

and domestic arbitration.

Keywords: Tanzania, domestic arbitration, international arbitration,

investment disputes.

* LLB (Mzumbe University, 2019); Currently LLM – Commercial Law candidate at

Mzumbe University.

† LLB (University of Dar Es Salaam), LLM – Mercantile Law (Stell), LLD (UWC).

(2021) 7(2) JCCL&P 101

© Juta and Company (Pty) Ltd

102

(2021) 7(2) JOURNAL OF CORPORATE AND COMMERCIAL LAW & PRACTICE

https://doi.org/10.47348/JCCL/V7/i2a5

I INTRODUCTION

On 14 February 2020, the Tanzanian Parliament enacted the

Arbitration Act 2 of, 2020. The Act came into operation on 18

January 2021. It has repealed and replaced the Arbitration Act, 1931.1

New changes have been introduced with the view of curing the long-

running stalemates that were prevalent in the previous law and

creating a friendlier arbitration environment in Tanzania. Besides,

the new Act has amended some laws such as the Civil Procedure

Code,2 the Natural Wealth and Resources (Permanent Sovereignty)

Cap 449 of Tanzanian laws; the Public and Private Partnership Act

18 of 2010; and the Criminal Procedure Act.3 Such amendments

will have enormous implications on the arbitration framework in

Tanzania. At the same juncture, the Act led to the publication of four

Regulations to wit:

• Arbitration (Rules of Procedure) Regulations;4

• Reconciliation, Negotiation, Mediation and Arbitration (Practitioners

Accreditation) Regulations;5

• the Code of Conduct for Reconciliators, Negotiators, Mediators

and Arbitrators, Regulations;6 and

• the Arbitration Centre (Management and Operations) Regulations.7

This article discusses critically the changes which have been brought

by the new Arbitration Act and its regulations and their implications

for domestic and international arbitration and other related laws.

The article consists of seven parts, including this introduction. Part II

provides a historical snapshot of arbitration law in Tanzania. Part III

briefly examines the current arbitration legal framework while

part IV explains the anatomy of the new arbitration legislation. In

part V, the article alludes to and critically discusses the new features

brought by the new Arbitration Act and its Regulations. Part VI

examines the implications of the new arbitration law to domestic

and international arbitration and to other related laws. Part VII draws

a conclusion and a way forward.

1 Cap 15.

2 Cap 33 R.E 2019.

3 Cap 20 R.E 2019.

4 Arbitration (Rules of Procedure) Regulations, Government Notice No 146 of

2021.

5 Reconciliation, Negotiation, Mediation and Arbitration (Practitioners Accreditation)

Regulations, Government Notice No 147 of 2021.

6 Code of Conduct for Reconciliators, Negotiators, Mediators and Arbitrators,

Regulations, Government Notice No 148 of 2021.

7 Arbitration Centre (Management and Operations) Regulations, Government

Notice No 149 of 2021.

© Juta and Company (Pty) Ltd