Institutionalize arbitral structures under AfCFTA regime – Prof. Abotsi

The Dean of the UPSA School of Law, Professor Kofi Abotsi has stated that institutionalizing arbitral structures and systems on the African continent is necessary if the AfCFTA Secretariat wants an effective and beneficial arbitration regime.

Under the dispute resolution mechanism of the AfCFTA, parties to trade disputes have the alternative of arbitration away from the structured process of the Dispute Settlement Board (DSB). This is made clear in articles 6 and 27 of the protocol. 

“It is instructive that the protocol does not provide in facilitation towards promoting arbitration beyond the provision per se, but indeed this is not a legitimate expectation to be expected of the AfCFTA Secretariat,” Prof. Abotsi said while speaking at an international lecture organized by the African Bar Association with collaboration from the Ghana Bar Association and the UPSA Law School. 

There’s very little resolve to settle commercial disputes through arbitration on the continent.  Most parties prefer destinations in London, Paris, and New York.

At a briefing, heralding the 6th ICC Africa Regional Arbitration Conference in Nigeria, Chairman, Arbitration Commission of International Chambers of Commerce Nigeria (ICCN), Mrs. Dorothy Ufot expressed the need for consolidation of Alternative Dispute Resolution (ADR) in Nigeria and the African continent. 

Prof. Abotsi explains that “the reality of weak structures or non-existent institutions or arbitration and its facilities have implied that very often, European lawyers and capitals have acted as priority options for commercial dispute resolutions. This should not be expected to change unless there is a more intentional intervention in this regard.”

“For an effective and beneficial regime on arbitration under the AfCFTA, there is the need to institutionalize arbitral structures and systems on the continent, and perhaps an initial facilitation provided by the DSB in this regard may come in handy. I have to be honest and say that I’m not here to promote Ghana getting the venue as the AfCFTA Secretariat, but given that we are advocating the establishment of arbitral bodies, I don’t think it would be bad if Ghana becomes the capital of arbitration for Africa under the AfCFTA."