News
2001

Dispute Resolution Changes in Uganda

In May 2000 Uganda introduced The Arbitration and Conciliation Act, 2000, described as "an Act to amend the law relating to domestic arbitration, international commercial arbitration and enforcement of foreign arbitral awards, to define the law relating to conciliation of disputes and to make other provision relating to the foregoing".

This comprehensive piece of legislation consists of 73 sections divided into 7 parts and two accompanying schedules. The largest part lays down the principles governing arbitration, from the initial agreement to the final award. These provisions for the most part reflect the principles expressed in the UNCITRAL model laws. However, Uganda has chosen to diverge on certain points. For instance, a sole arbitrator shall be appointed if the parties have not stipulated the number to be appointed. English is in principle to be the language of arbitration. Regarding the rules applicable to the substance of a dispute, failing a choice by the parties, the tribunal shall apply those considered appropriate in light of the circumstances.

Certain differences will also be noted between arbitration as envisaged by Uganda's new Act and the ICC Rules of Arbitration. For instance, the former sets a time limit of two months for making an award, as compared with the ICC six-month time limit.

Part 3 of the new Act contains provisions facilitating enforcement of awards made in states that are parties to the New York Convention and part 4 does likewise for those made pursuant to the Convention on the Settlement of Investment Disputes between States and Nationals of other States (the ICSID Convention).

The Act also establishes a body known as the Centre for Arbitration and Dispute Resolution, which is intended to fulfil various functions defined elsewhere in the Act. The Centre also devises rules for the implementation of arbitration, conciliation and ADR processes, establishes a code of ethics for, and maintains a list of, qualified arbitrators, conciliators and experts, sets fees for arbitrators, and facilitates certification, registration and authentication of arbitral awards and conciliation settlements.

A further feature of the new Act is a set of model forms for use by the parties or the arbitrator at different stages of arbitral proceedings. They include an agreement to submit to arbitration following the occurrence of a dispute, an agreement on the appointment of a single arbitrator and a form relating to the extension of the time allowed for the arbitrator to make his award.

Uganda's new Arbitration and Conciliation Act replaces the former Arbitration Ordinance dating from 1930 and brings arbitration in Uganda in line with prevailing international practice. A notable change introduced by the new Act is the widening of arbitrability to cover any dispute arising from a legal relationship, "whether contractual or not".

The full text of The Arbitration and Conciliation Act, 2000 was published in Supplement No. 7 to The Uganda Gazette No. 32, Vol. XCIII, dated 19 May 2000.