INTERNATIONAL COMMERCIAL ARBITRATION IN TANZANIA: EVALUATING ITS ROLE IN BUSINESS DISPUTE RESOLUTION

Abstract

This paper critically evaluates the role of international commercial arbitration in resolving business disputes within the legal framework of Tanzania. It begins by tracing the evolution of arbitration laws in Tanzania, with particular focus on the Arbitration Act [Cap. 15 R.E. 2023], which aligns domestic practice with international standards such as the UNCITRAL Model Law and the New York Convention. The study explores the legal and institutional infrastructure underpinning arbitration, including the powers of arbitral tribunals, judicial support functions, the enforceability of foreign awards, and the role of the Tanzania Arbitration Centre. The analysis demonstrates that while the legislative reforms have significantly modernized Tanzania’s arbitration regime offering party autonomy, procedural flexibility, and finality implementation challenges persist. These include limited judicial specialization, inconsistent enforcement practices, underdeveloped arbitral institutions, and risks posed by broad interpretations of public policy. The paper also highlights judicial attitudes towards arbitration, identifying positive trends as well as areas of concern that could erode confidence in the arbitration system. Based on doctrinal and comparative analysis, the study concludes that although Tanzania has established a sound legal foundation for international arbitration, realizing its full potential requires strategic investment in institutional capacity, jurisprudential development, and judicial training. The paper recommends reforms to enhance procedural efficiency, enforce arbitral awards effectively, and increase the Tanzania Arbitration Centre’s regional and international visibility. These steps are essential to positioning Tanzania as a competitive and reliable forum for international commercial dispute resolution.