Dar es Salaam. Arbitration and other alternative dispute resolution (ADR) mechanisms are gaining prominence in Tanzania as businesses, investors, and public institutions seek faster and more cost-effective ways of resolving commercial disputes while preserving business relationships.
The growing use of these mechanisms comes amid Tanzania’s economic growth, increasing foreign investment, and expanding activity in sectors such as mining, construction, energy, transport, and real estate, which have increased the need for specialized and efficient ways of resolving disputes.
A total of 380 disputes have been handled since 2023 through arbitration, mediation, or adjudication, and among them, 250 have been resolved. The use of these mechanisms has helped parties save time and reduce costs associated with prolonged disputes.
According to the Tanzania Institute of Arbitrators (TIArb), mediation can often be completed in one to three sessions over a few weeks, while arbitration typically takes three to six months from filing to the issuance of an award, although complex cases may take longer.
The development was highlighted by the Assistant Director for Domestic Arbitration in the Attorney General’s Office, David Kakwaya, ahead of the opening of Dar Arbitration Week 2026 and the eighth Tanzania Institute of Arbitrators (TIArb) Annual Arbitration Conference, scheduled to run from July 22 to 24 in Dar es Salaam.
Mr Kakwaya said the government continues to support arbitration and other ADR mechanisms as alternatives to lengthy court litigation. “Alternative dispute resolution is cost-effective because it saves both time and financial resources,” he said.
He said the approach was particularly important in commercial disputes, where prolonged legal battles can affect business operations, delay investment decisions, and increase the financial burden on the parties involved.
Mr Kakwaya added that many government contracts involving large-scale projects and substantial investments include arbitration clauses because the mechanism provides practical solutions that can benefit all parties.
The use of arbitration is increasingly relevant as Tanzania continues to attract investment and implement major projects requiring significant amounts of capital and long-term partnerships between the government, local businesses, and international investors. In such projects, disputes may arise over contracts, payments, construction works, procurement, performance obligations, and other commercial matters. Arbitration and other ADR mechanisms provide parties with an alternative avenue for resolving such disagreements without necessarily going through the full court litigation process.
He said strengthening knowledge and capacity in arbitration was important to ensuring that Tanzania had professionals capable of handling increasingly complex commercial disputes arising from the country’s economic activities. The conference, organized by TIArb, is being held under the theme “Arbitration in the Era of Sustainable Development: Balancing Natural Resources, Investment, and Infrastructure Development.”
The forum seeks to strengthen arbitration as a strategic mechanism for resolving disputes arising from Tanzania’s expanding economy, particularly in natural resources, investment, and infrastructure development.
TIArb President Aderickson Njunwa said the speedy resolution of commercial disputes was important to economic growth because it gives businesses and investors greater certainty and allows companies to continue operating without prolonged interruptions.
“Quick settlement of disputes contributes to a healthy economy because businesses are able to continue operating without prolonged interruptions,” he said.
Mr Njunwa said delays in resolving commercial disputes could have wider implications for businesses, particularly where the parties involved depend on each other to continue delivering goods, services, or projects.
He said arbitration could also help preserve relationships between disputing parties, making it particularly suitable for commercial transactions involving long-term partnerships.
“Arbitration allows parties to seek a solution to their dispute while, in many cases, maintaining the commercial relationship that existed before the dispute,” he said.
“We have qualified experts who can effectively resolve commercial disputes. Arbitration is not only for large multinational projects but also for disputes involving small and medium-sized enterprises,” he said.
He said expanding awareness of arbitration among businesses was important to ensure that the mechanism was not viewed as an option reserved only for major corporations or large investment projects.
Founded in 1997, TIArb promotes arbitration, mediation, and other ADR mechanisms as alternatives to conventional court litigation, with an emphasis on impartiality and professionalism.
More than 300 delegates are expected to attend the conference, including government officials, judges, arbitrators, legal practitioners, academics, investors, representatives of financial institutions, and private-sector stakeholders.
Throughout the week, delegates will discuss issues including extractive industries and sustainable development, investment treaty arbitration, government capacity building, construction arbitration, dispute adjudication, and the growing role of technology in dispute resolution.
The discussions are expected to examine how arbitration can respond to the changing nature of commercial disputes and support Tanzania’s broader economic development agenda.
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