LUSAKA-(MaraviPost)-Malawi’s Attorney General (AG)Thabo Chakaka Nyirenda has called for stronger regulations and legislative reforms to address key challenges in international arbitration, during his remarks at the ongoing Lusaka Arbitration Week.
Nyirenda began his speech by congratulating Zambia’s Solicitor General (SG) and Attorney General (AG) for their success in the recent energy dispute case of ANTRA Energy v ZESCO and the Government of the Republic of Zambia, where the legal team successfully defended a claim exceeding US$500 million.
Turning to broader arbitration issues, Nyirenda highlighted concerns about investors frequently demanding that disputes be resolved outside the host country or even Africa, arguing that local arbitration would affect the bankability of investments.
Participants bulldoze host countries into submitting to arbitration taking place in Western cities.
He challenged this notion, emphasizing the need to build trust in African arbitration institutions to resolve disputes fairly and effectively.
Reflecting on the Nigeria v Process & Industrial Developments Limited case-where an arbitration award was overturned due to fraud and public policy issues.
Nyirenda also raised serious concerns about the conduct of legal representatives.
“In that case, the lawyers for both the claimant and the Nigerian government were involved in what I could term ‘match-fixing’, as they mounted a very weak defence.
“In instances where legal teams mount poor defences, it feels like ‘match-fixing.’ Shouldn’t there be state regulation to ensure that legal teams defend public interests more rigorously and ensure that there is no match fixing thereby preventing fraud, corruption and money laundering and ensuring that arbitral institutions are not used to perpetrate fraud and money laundering?” he asked.
The Attorney General also pointed to legislative gaps in Malawi’s Public-Private Partnership Act, which mandates that disputes be governed by Malawian law but doesn’t require arbitration to occur within Malawi or Africa.
In contrast, Zambia’s Solicitor General mandates local arbitration.
“Shouldn’t such requirements be enshrined in law to safeguard national interests?” he suggested.
Another critical issue raised was “double-hatting”, where lawyers act as arbitrators in some cases while serving as legal representatives in others, creating potential conflicts of interest.
He emphasized the need for regulation to preserve ethical standards and impartiality in arbitration proceedings.
AG Nyirenda however expressed concern over the poor quality and weak reasoning of some arbitration awards, which in some instances force courts to intervene and set aside decisions.
He called for higher standards and accountability in award writing to uphold the credibility of the arbitration process.
As discussions continue at Lusaka Arbitration Week, AG Nyirenda ’s remarks have sparked vital conversations about the future of arbitration in Africa, with calls for legislative and institutional reforms to strengthen dispute resolution mechanisms and protect public resources across the continent.