International commercial disputes to be handled by arbitrators

By The Inspirer.

Experts in resolving international commercial disputes from 38 countries around the world convened in Kigali on June 6 to discuss with the judiciary the possibility of assigning international investor-related commercial cases to arbitrators.

In Rwanda, such disputes are typically handled by commercial courts, mediators, or the Kigali International Arbitration Center (KIAC), a specialized institution for resolving business-related disputes.

Victor Mugabe, Secretary General of KIAC, explained that the International Council for Commercial Arbitration (ICCA) chose Rwanda as the meeting venue for African arbitrators to learn from KIAC, which ranks third in Africa in terms of expertise in resolving international business disputes.

Mugabe noted that hosting the ICCA conference in Kigali could position Rwanda as a top professional arbitration hub in Africa, potentially surpassing Egypt and South Africa, due to Rwanda’s strong support for private, efficient, and fast-tracked investment dispute resolution.

He gave the example of a foreign investor who sets up a garment factory in Rwanda and needs to import sewing machines, contracting a Rwandan supplier who later fails to deliver as agreed.

“In such a case, the supplier may bring substandard machines. But if the contract includes an arbitration clause, the parties can resolve the dispute confidentially and quickly through arbitration. This approach avoids negative consequences and allows business operations to continue smoothly,” said Mugabe.

He emphasized that arbitrators often possess deeper technical knowledge than judges in commercial courts, citing the example of a power plant dispute, where arbitrators might better understand the technical workings than legal professionals.

“Arbitrators may include experts in construction, agriculture, accounting, and other fields,” Mugabe added.

**Supreme Court President Mukantaganzwa:**

The role of courts, according to Supreme Court President Domitille Mukantaganzwa, would mainly be to enforce arbitration rulings by issuing execution orders. “We should reserve courtrooms for the most serious criminal offenses, while commercial matters are handled through mediation and arbitration.”

Lawyer, arbitrator, and mediator Emmanuel Butare noted that commercial disputes handled through the courts rarely yield beneficial outcomes, often leading to time and financial losses for both parties.

Between July 2024 and May 2025, 2,445 cases in Rwanda were resolved through mediation and arbitration, while only 230 were filed in commercial courts, according to KT Press.

Mukantaganzwa and Minister of Justice and Attorney General Dr. Emmanuel Ugirashebuja both affirmed that arbitration offers quicker and more convenient outcomes for investors.

In her opening speech at the international arbitration conference, Mukantaganzwa emphasized that arbitration is highly valued in Rwanda, not only in terms of respecting arbitration rulings but also in implementing them effectively.

“As our economy becomes more complex, investment increases, and cross-border trade expands, we need reliable and rapid arbitration mechanisms. These contribute to economic growth, increase investor confidence, and foster regional integration,” Mukantaganzwa said.

Justice Minister Dr. Emmanuel Ugirashebuja reinforced the need for international arbitration, particularly in the context of the African Continental Free Trade Area (AfCFTA), which requires efficient dispute resolution across the continent.