Malawi makes strides in international arbitration

By Martha Chikoti

Malawi has taken a significant step forward in establishing itself as a hub for international arbitration.

The meeting was fruitful- Chakaka Nyirenda (Third from Right )

According to Attorney General in Malawi Thabo Chakaka Nyirenda, , the country's accession to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, following in the footsteps of Sierra Leone, has qualified Malawi as a suitable jurisdiction for resolving international and local commercial disputes through arbitration.

He said this development is expected to provide a one-stop forum for the effective and efficient resolution of commercial disputes, with judicial intervention minimized to avoid disrupting the arbitration process.

"As noted by the Supreme Court of Appeal, "the overarching idea is to provide a one-stop forum for the effective and efficient resolution of commercial disputes through arbitration.

"we should be finding solutions to delays in concluding arbitration cases which have long-hamstrung courtroom litigation."

Malawi's journey towards establishing itself as an international arbitration hub began in January 2022, with a seminar training almost 200 lawyers from Malawi, Zambia, Zimbabwe, Namibia, and South Africa in international commercial arbitration.

The government subsequently drafted and passed legislation for the establishment of the Malawi International Arbitration Centre (MIAC), which was published in the Government Gazette on February 2, 2024.

The speed at which the law was enacted demonstrates the concerted effort of various stakeholders to establish MIAC.

Malawi joins other African countries, including South Africa, Kenya, Nigeria, Egypt, and Rwanda, in establishing arbitration centers.

The Malawi Supreme Court of Appeal has also shown its support for international arbitration, refusing to grant an anti-arbitration injunction in a recent case.

The success of MIAC will depend on the business community's preference to use the center. As noted by Nyirenda, "the business community which exists to make a profit must therefore support arbitration to optimize profits."

The use of arbitration is expected to contribute significantly to Malawi's economic growth and development, in line with the UN Agenda 2030 and the AU Agenda 2063.

To further enhance its arbitration framework, Malawi should focus on key areas of reform, including modernizing its arbitration law, transforming or repealing outmoded laws, and adopting technology to enhance accessibility to arbitration.