By Wezzie Gausi:
Malawi Law Society (MLS) has expressed hope that establishment of the Malawi International Arbitration Centre (MIAC) will help address the problem of case backlog in the country’s courts.
The development comes at a time the High Court Commercial Division reportedly has six judges only.
The judges face a backlog of approximately 2,500 cases, according to the Malawi Judiciary’s Annual Report for 2023.
Speaking at a MIAC awareness and membership recruitment symposium in Lilongwe yesterday, MLS President Patrick Mpaka said the report indicates that the official average annual disposal rate for cases in that Commercial Division is 38 percent.
“This means if one entered the Commercial Court system with a case, they have a 62 percent chance of not getting their commercial dispute resolved within a year, hence the need for arbitration.
“The purpose of the symposium is, therefore, to inform the business community and professional bodies or their members or member firms on the state of development of the centre and the direction the initiative is taking as an alternative way of resolving commercial and investment disputes and to give room for formal ownership and participation by the local business [community],” Mpaka said.
On his part, Justice and Constitutional Affairs Minister Titus Mvalo said the country had made significant progress in coming up with enabling legislation, citing the enactment of the International Arbitration Act in 2024.
He said the government had no difficulties with taking it through the legislative process.
“The Act aligns our legal framework with the Uncitral Model Law. This Act not only facilitates the use of arbitration in resolving international commercial disputes but also ensures the recognition and enforcement of arbitration agreements and foreign arbitral awards, reinforcing our commitment to international standards and best practices,” Mvalo said.
Weighing in on the issue, Malawi Confederation of Chambers of Commerce and Industry (MCCCI) President Wisely Phiri said MAIC seeks to establish and maintain a private sector-led neutral and independent facility for the resolution or settlement of commercial, investment and other disputes by way of arbitration, mediation and like processes.
“This will institutionalise arbitration and alternative dispute resolution in Malawi and enhance access to justice through efficient non-adjudicatory measures in the service of local business and the broader business communities of Southern Africa and internationally. Its unique feature is that it is a legally sanctioned wholly private initiative that actively promotes collaboration and recognition by State parties and multilateral institutions at national, regional and international levels,” Phiri said.
MAIC is a joint venture private company limited by guarantee.
It was incorporated by MCCCI and MLS on September 7 2023.
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