Why Africa must strengthen cross-border collaboration to deepen Arbitration and ADR adoption

The need to strengthen cross-border collaboration to deepen Arbitration and alternative dispute resolution (ADR) adoption is no longer as option with the growing influence of inter-African trade following the adoption of the African Continental Free Trade Afre (AfCFTA), which aims to create a single continental market.

Intra-African trade value rose from about $140 billion in 2017 to approximately $190 billion in 2023. According to projections, AfCFTA has the potential to boost intra-African exports by 100 percent by 2035.

While economics project significant gains by 2035, driven by industrial a d agricultural sectors; future initiatives aim to build on existing momentum and also address structural challenges.

However, there is a need to promote and strengthen a continent’s wide adoption of Arbitration and ADR upon which the future initiatives will be built – while also addressing other structural challenges impede business sustainability and growth.

On the back of this, the Nigerian Institute of Chartered Arbitrators (NICArb), issued a 25 points communiqué at the end of its 2025 International Arbitration and ADR conference, themed, ‘Strengthening Institutional Arbitration and ADR in Africa: Charting a New Path.’

The conference, held in Lagos on November 27 and 28, 2025, emphasised the readiness of African states to strengthen arbitration and ADR through institutional reforms, technological innovation, judicial cooperation, and ethical practices.

The Institute posited that to retain high-value disputes within Africa, arbitration centres must be encouraged to collaborate on joint case management, arbitrator exchange, training programs, and shared research.

According to the NICArb, continental cooperation strengthens capacity, ensures consistency, and positions Africa as a competitive hub for arbitration.

Delegates agreed that Africa must take ownership of its dispute-resolution landscape to support economic development, investment protection, and sustainable peace.

“Arbitration and ADR are engines of stability and the foundation for inter-regional trade,” Lateef Fagbemi, the Attorney-General of the Federation and Minister of Justice, said during the conference.

According to the AGF, Africa is on the brink of transformation, emphasising that sophisticated businesses required strong dispute-resolution mechanisms, particularly under AfCFTA.

“For decades, Africa has been a centre of global investment, yet the mechanisms for resolving the disputes arising from these transactions are not always reflected on our continent,” Babajide Sanwo-Olu, Lagos State governor, stated.

Sanwo-Olu, who was represented by Lawal Pedro, Lagos State Attorney-General, questioned why African disputes were often sent to foreign jurisdictions despite the continent’s wealth of skilled arbitrators, reputable institutions, and modern facilities.

“Investors want predictability, fairness, efficiency, and credibility. African disputes can be resolved at home with dignity, fairness, and global standards.”

The conference convened an assembly of arbitral professionals, judges, academics, corporate leaders, and policymakers to explore strategies for advancing arbitration and ADR across Africa.

Over 997 delegates, comprising 460 physical and 489 online delegates, with 40 speakers/panellists, including eight moderators and contributors from Nigeria, Africa, Europe, the U.S.A., and other parts of the world converged on Lagos for the 2025 NICArb annual. conference.

The conference comprised multiple plenary sessions covering themes such as strengthening institutional arbitration, effective dispute resolution in energy, oil & gas, construction, infrastructure, banking, and finance, as well as the role of media in shaping public perception of ADR.

Discussions explored the importance of credible, independent institutions; judicial partnership; ethical standards; capacity building; digital innovation; and continental collaboration.

NICArb 25 points communiqué

One- Strengthening Institutional Arbitration: Institutional arbitration offers advantages over ad hoc processes, including administrative support, procedural standardisation, ethical oversight, and cost predictability. It is recommended that African institutions modernise their rules, establish transparent governance structures, and adopt best practices to enhance credibility and attract both domestic and international users.

Two- Adopting Institutional Over Ad Hoc Arbitration: While ad hoc arbitration provides flexibility, it lacks institutional support mechanisms that ensure consistent quality and timely resolution. Institutional arbitration, on the other hand, promotes standardised case management, monitored timelines, robust ethical frameworks, and clear cost structures, which are essential for establishing trust in Africa-based arbitration.

Three- Aligning with International Best Practices: African arbitration and ADR institutions are urged to integrate lessons from CIETAC, IMI, SIAC, HKIAC and UNCITRAL while tailoring frameworks to local contexts. Standardisation of rules, adoption of internationally recognised procedural frameworks, and engagement with global arbitration bodies were identified as key steps to enhance reliability and competitiveness.

Four-. Africa’s Expanding Economic Landscape: Africa’s economic diversification, spanning energy, infrastructure, technology, manufacturing, and financial services, has led to an inevitable rise in complex commercial and investor-state disputes. This rapid development increases transactional complexity, cross-border engagement, and regulatory demands, which require robust and credible arbitration mechanisms to manage disputes efficiently and sustain investor confidence.

Five- Integrating African Values: Modern ADR should build upon African indigenous dispute-resolution principles, including reconciliation, dialogue, communal cohesion, and restorative justice. Incorporating these culturally grounded practices in African arbitration and ADR practices fosters legitimacy, strengthens public confidence, and ensures that arbitration is accessible, particularly for SMEs, community disputes, and local stakeholders.

Six- Effective Enforcement of Awards: The enforceability of arbitral awards remains a cornerstone of investor confidence. While the New York Convention provides a global framework, inconsistent domestic enforcement and judicial delays in many African jurisdictions remain significant barriers. Delegates recommended that courts adopt a pro-arbitration posture, refrain from unnecessary intervention, and ensure predictable enforcement of awards.

Seven- Judicial Cooperation and Education: Progressive arbitration legislation, such as the Arbitration & Mediation Act 2023, requires ongoing judicial education and awareness. Judges must develop a deep understanding of core arbitration principles, including party autonomy, kompetenz-kompetenz, separability, and limited judicial intervention and apply them consistently to ensure fairness, efficiency, and predictability in arbitration.

Eight- Specialised Arbitration Courts: There are benefits in the creation of specialised commercial or arbitration courts to expedite resolution. This will result in building expertise and improving enforcement outcomes. Dedicated courts enable judges to develop sector-specific expertise, maintain consistency, and handle complex domestic and international disputes.

Read also: Judges call for speedy courts, ADR, international models for insolvency reform

Nine- Leveraging Technology: The use of digital tools, including virtual hearings, electronic filings, digital evidence management, and automated scheduling, enhances efficiency, reduces costs, and expands access to justice. It is recommended that institutions invest in robust IT infrastructure and develop digital protocols to ensure seamless case management and secure communication.

Ten- Cautious Use of AI: Artificial intelligence can assist in document review, legal research, and scheduling, but it cannot replace human judgment. Practitioners are warned against over-reliance on AI, due to risks such as algorithmic bias, data privacy issues, and inadvertent breaches of confidentiality. Arbitrators should ensure that AI tools complement rather than substitute human decision-making.

Eleven- Energy, Extractives, and Power Arbitration: Disputes in energy, extractives, and power sectors, ranging from joint ventures to production-sharing contracts, environmental compliance, and community grievances, remain central to Africa’s economic stability. There is a need for an increase in sector-specific dispute-resolution frameworks and policy in Nigeria and Africa to protect investments and maintain operational continuity.

Twelve- Promoting African-Seated Energy Arbitration: Locating energy arbitrations in African jurisdictions is cost-effective for local parties and enhances the experience of African arbitrators. It is recommended that there be specialised panels for energy and extractives disputes, providing continuous professional training, and encouraging regional collaboration to strengthen local expertise.

Thirteen- Environmental, Social, and Governance (ESG) Considerations: ESG obligations increasingly influence arbitration outcomes. It is thus recommended that African institutions should develop ESG-sensitive arbitration guidelines, strengthen remedies for affected communities, and work with governments to clarify regulatory expectations, thereby balancing development needs with environmental and social justice.

Fourteen- Construction and Infrastructure Disputes: Africa’s growing infrastructure investments have led to increased disputes over timelines, variations, payment delays, and technical compliance. It is recommended that institutionalising mechanisms such as dispute boards, early neutral evaluation, and fast-track arbitration be used to ensure timely, fair, and cost-effective resolution of complex construction claims.

Fifteen- Capacity-Building for Sector-Specific Arbitration: Effective resolution of energy, construction, and infrastructure disputes requires technical competence. African arbitration and ADR institutions are encouraged to develop targeted training programs for arbitrators and ADR practitioners, focusing on industry-specific knowledge, regulatory understanding, and procedural efficiency.

Sixteen- Third-Party Funding (TPF): TPF enhances access to arbitration but requires clear regulatory frameworks to prevent ethical and procedural abuses. It is recommended that comprehensive rules on disclosure, conflicts of interest, confidentiality, and funder responsibilities be set up, to ensure fairness for both claimants and respondents.

Seventeen- ADR in Banking, Finance, and Fintech: Litigation delays and enforcement challenges hinder financial dispute resolution. Embedding arbitration and mediation clauses in loan agreements, fintech contracts, and insolvency arrangements to accelerate resolution, reduce costs, and foster financial stability is recommended to boost efficiency in the sector.

Eighteen- Cross-Border Collaboration: To retain high-value disputes within Africa, arbitration centres were encouraged to collaborate on joint case management, arbitrator exchange, training programs, and shared research. Continental cooperation strengthens capacity, ensures consistency, and positions Africa as a competitive hub for arbitration.

Nineteen- Judicial Support for ADR: Courts play a vital role in facilitating arbitration, including interim relief, evidence management, and enforcement. There is the need for proactive judicial engagement, a pro-arbitration mindset, and impartial intervention to enhance predictability and credibility.

Twenty- Ethics and Independence: Integrity, impartiality, and adherence to ethical standards are critical for both arbitrators and institutions. Arbitration and ADR institutions are encouraged to adopt comprehensive codes of conduct, robust oversight mechanisms, and ongoing professional development to maintain public trust in arbitration processes.

Twenty-one- Media Engagement and Public Trust: Responsible media reporting educates the public, enhances transparency, and improves perception of arbitration. It is recommended that institutions develop media strategies, including storytelling, to highlight ADR successes, clarify misconceptions, and promote wider adoption without compromising confidentiality.

Twenty-two. Institutional Mediation and Collaboration: Lessons from Singapore, Hong Kong, and the Lagos Multi-Door Courthouse demonstrated that institutional mediation increases accessibility, encourages early settlements, and reduces costs. African institutions are urged to adopt structured mediation frameworks, leverage technology, and collaborate across borders to strengthen ADR practices.

Twenty-three- Training and Mentorship for Young Arbitrators: Young practitioners are essential to sustaining Africa’s ADR ecosystem. It is recommended that arbitration and ADR institutions, along with senior practitioners, engage in mentorship and provide tribunal secretary roles. Younger practitioners are encouraged to engage in research opportunities and publications to equip themselves as emerging arbitrators with practical knowledge, ethical grounding, and professional confidence.

Twenty-four- Continental Harmonisation of ADR Rules: Harmonised arbitration rules reduce unpredictability, facilitate cross-border enforcement, and strengthen investor confidence. The success of models such as OHADA is a case in point, and it is recommended that such initiatives be encouraged across the Continent, including shared rules, joint training programs, and collaborative panels.

Twenty-five- Africa Taking Ownership of ADR: African states’ credibility in arbitration depends on robust institutions, transparent and ethical arbitrator appointments, modernised rules, practitioner capacity development, and prioritisation of African seats. Delegates concluded that deliberate and coordinated efforts are required to position Africa as a trusted, competitive global hub for arbitration and ADR.

Seyi John Salau is a BusinessDay Correspondent with interest in development journalism, which tells stories that connect the people, brands, and the government. SeyiJohn is also a media professional with BSc, Mass Communition (ACU); Masters of School Media (MSM, Ibadan) & MSc, Mass Communication (Caleb).

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