AG Dame urges reform of International arbitration laws; calls for global law practice

By:  Richard Osei Boateng 

The Attorney-General and Minister of Justice, Godfred Yeboah Dame, has highlighted the pressing need for reform in Africa's legal frameworks surrounding international arbitration. He argued that the changing business landscape on the continent and the rise in the use of alternative dispute-resolution mechanisms in commercial contracts make it essential to review current practices. Mr Dame pointed out that arbitration’s influence on African economies is significant. Still, it also presents risks, especially in its secrecy and the binding nature of awards, which can open doors to fraud and exploitation in certain cases. He expressed concern that some companies, unable to win claims in African domestic courts, often succeed in international arbitration, sometimes through agreements that African countries haven't properly sanctioned. This, he said, was not a result of weak African judicial systems but rather a reflection of the opaque and inflexible nature of international arbitration. Delivering a keynote address at the African Regional Forum during the International Bar Association’s annual conference in Mexico City on September 19, 2024, he highlighted how arbitration often occurs outside Africa, in places like London, Paris, and New York. Even when disputes involve African parties, arbitration tends to follow foreign rules, which sidelines African arbitrators and hinders the development of arbitration expertise on the continent. He cited a recent case in which Nigeria faced an arbitration award of over $11 billion, though this was later overturned by the London High Court. Dame argued that Africa is frequently disadvantaged in international arbitration settings and emphasized the need for reform. However, he clarified that Africa should not shy away from arbitration altogether but should work toward creating a more secure and fair system. He suggested that African countries should aim to have international arbitrations held on the continent, governed by African laws, to ensure more transparency and control.

Source: Ghana News