Int'l arbitration rules unfavourable to Africa-AG Dame calls for reforms

Attorney-General and Minister for Justice, Godfred Yeboah Dame, has called for significant reforms in the legal frameworks governing international arbitration in Africa, citing its growing importance to African economies. 

Speaking at the International Bar Association’s annual conference in Mexico City, Dame expressed concern over the potential for abuse within the arbitration system due to the secrecy and finality of proceedings. 

He argued that this has led to unfair outcomes for African nations, referencing the 2023 case between Nigeria and Process & Industrial Development Limited (P&ID), where the London High Court set aside a $11 billion award.

Dame emphasized that many arbitration cases involving African countries are held in foreign jurisdictions, which adds financial burdens and limits opportunities for African arbitrators. 

He called for arbitration involving African states to take place within Africa, under local legal frameworks, to support the development of the continent's arbitration capacity and reduce costs. Ghana, for example, is amending its State (Property and Contracts) Act to mandate that disputes involving the state be governed by Ghanaian law and resolved domestically.

The AG also advocated for global regulatory reforms to remove barriers that prevent African lawyers from practicing in international jurisdictions, especially given the interconnected nature of modern legal practice. 

He highlighted the importance of African lawyers playing an active role in supporting the African Continental Free Trade Area (AfCFTA) and its Dispute Settlement Body, which seeks to address trade disputes among member states.

In closing, Dame urged Africa to embrace reforms that promote fairness, transparency, and the rule of law in arbitration, ensuring that the continent fully benefits from globalization while safeguarding its sovereignty.