Minister for Justice, Godfred Yeboah Dame, has called for significant reforms in the legal regulatory processes governing international arbitration in Africa.
Addressing the African Regional Forum at the International Bar Association’s annual conference Godfred Yeboah Dame emphasized the increasing role of arbitration in African economies and the need to safeguard against abuses in the system.
“For all its touted advantages, it is indisputable that arbitration, particularly the secrecy of proceedings and the finality of awards, can sometimes be misused, leading to fraud and abuse against the people of Africa,”
He expressed concern over cases where companies failed in local courts but succeeded in securing substantial awards in international arbitration, often in disputes involving contracts that lacked statutory and constitutional approvals.
Attorney General stressed the urgency of reforming arbitration regulations to prevent Africa from being exploited in such proceedings, adding that Africa suffers from prejudice in international arbitration forums.
He highlighted a recent case in which a $11 billion arbitration award against the Government of Nigeria was overturned by the High Court of London in 2023, underscoring the flaws and biases in the current system.
“While international arbitration promises neutrality, privacy, and efficiency, it cannot be denied that African countries have faced unfair and perverse awards. There is an urgent need for reform,” Dame stated.
He called for a reassessment of the arbitration framework to ensure it serves the interests of African nations and suggested that international arbitrations involving African countries should take place within the continent, regulated by local laws.
