KAMPALA – The International Centre for Arbitration & Mediation in Kampala (ICAMEK) and the Private Sector Foundation Uganda (PSFU) have launched a groundbreaking partnership to revolutionize Uganda’s business dispute resolution landscape.
This collaborative effort champions Alternative Dispute Resolution (ADR) as a more efficient and cost-effective mechanism for settling commercial disputes, ultimately benefiting Uganda’s private sector and economy.
PSFU Executive Director Stephen Asiimwe noted, “Uganda’s private sector faces numerous challenges in contract enforcement and dispute resolution. Litigation can take over four years on average and cost up to 31% of the claim value, crippling businesses that rely on timely resolutions to maintain cash flow and avoid financial distress. ADR offers a solution that is more accessible, culturally appropriate and far less burdensome than traditional court litigation.”
He says that embracing ADR transforms the business landscape, ensuring efficient and effective justice delivery.
As PSFU approaches its 30th anniversary next year, Asiimwe welcomed the partnership which he says serves as a timely birthday gift.
With 330 diverse business associations under their umbrella, including bankers, lawyers, manufacturers, extractive sector players, transporters, healthcare providers, educators, agriculturalists and creative entrepreneurs, he underscores the daily arbitration needs.
“Our mission focuses on fostering a conducive business environment. Effective contract enforcement should never outweigh contract benefits. Uganda’s productivity and investor attractiveness hinge on efficient dispute resolution.”
ICAMEK Chairman John Fisher Kanyemibwa explains that the strategic partnership marks a pivotal moment for both organizations, paving the way for a new era in conflict resolution that significantly empowers Uganda’s business sector.
“ICAMEK was conceived by the private sector with businesses’ needs and aspirations in mind. Established on April 25, 2019, as an independent arbitration and mediation center, ICAMEK addresses disputes that businesses face. Recognizing traditional court litigation’s limitations – slow, expensive and complex – ICAMEK offers reliable alternative dispute resolution mechanisms.”
He added, “Since September 2019, we’ve actively facilitated ADR, easing the burden on Uganda’s courts and serving the private sector. This partnership strengthens our shared motive to foster a vibrant and resilient business environment.”
He notes that they have invested heavily in capacity building, delivering specialized training sessions to equip professionals across various sectors – banking, finance, trade, transport, construction and ICT – with knowledge to effectively utilize ADR mechanisms.
Key accomplishments, he noted include registering 96 arbitration cases and delivering 71 arbitral awards. “ICAMEK has forged crucial alliances to reinforce ADR in Uganda, demonstrating our commitment to shaping the country’s dispute resolution landscape.”
Through this collaboration, Kanyemibwa reaffirms their dedication to promoting a conducive business environment, empowering entrepreneurs and contributing to Uganda’s economic growth.
In East Africa, Uganda ranks among the top countries embracing ADR, with Kenya and Tanzania also making significant strides. However, regional comparisons highlight varying levels of ADR adoption.
Uganda’s arbitration framework is established, with ICAMEK leading the charge, while mediation is still developing. Kenya boasts an advanced mediation framework and a well-established arbitration centre (KCAB), with a higher ADR adoption rate of 30%. Tanzania’s arbitration centre is emerging, but mediation remains basic, with a lower adoption rate of 15%. Rwanda’s arbitration centre is developing, but mediation is limited, with an adoption rate of 10%.
The ICAMEK-PSFU partnership aims to promote ADR as a core business practice, enhance awareness, build capacity through specialized training and advocate for policies supporting ADR in Uganda’s legal and commercial frameworks.
Studies indicate that improving dispute resolution access by 19% can increase annual GDP growth by 0.17%. This potential economic impact aligns with both organizations’ goals, recognizing ADR as a catalyst for economic growth and business resilience.
ICAMEK, Uganda’s premier ADR institution, offers arbitration, mediation and conciliation services. PSFU, the private sector’s apex body, strengthens capacity and advocates for a conducive business environment.
Together, ICAMEK and PSFU foster a stable, trustworthy and predictable business environment in Uganda, driving economic growth and resilience.
