The Tanzanian Parliament has passed a bill to enact the new Arbitration Act 2020 (Bill). It now awaits Presidential assent before being passed into law to replace the existing Arbitration Act 1931.
The Bill provides for conduct relating to “domestic commercial arbitration”, “international, commercial arbitration” and enforcement of foreign arbitral awards and related matters.
Key issues are addressed in the Bill include:
- Creation of the Tanzania Arbitration Centre which will be responsible for the conduct and management of arbitration as well as accreditation of arbitrators in Tanzania.
- Mandatory provisions that must be adhered to by the parties notwithstanding any agreement to the contrary.
- Facilitation of the use of arbitration to make it central to the dispute resolution mechanisms in Tanzania.
- Enforcement of both domestic and international arbitral awards and the prerequisites of enforcement.
The Bill provides for matters which may lead to an arbitral award not to be recognised in Tanzania, including:
- Composition of the arbitral tribunal.
- Arbitral procedure not aligned with the parties’ agreement.
- Agreement not in accordance with the law of the jurisdiction where arbitration took place.
- Arbitral award has not yet binding on the parties.
- Arbitral award has been set aside or suspended by a court of the state in which, or under the law of which, that arbitral award was made.
- Making of the arbitral award was induced or affected by fraud, bribery, corruption or undue influence.
- Enforcement of the award would be contrary to the public policy of Mainland Tanzania.
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