Firm to quicken settlement of commercial disputes

The establishmet of Malawi International Arbitration Centre (Miac) is expected to speed up settlement of commercial and investment disputes through arbitration, it has emerged.

Miac is a joint venture private company by the Malawi Confederation of Chambers of Commerce and Industry and the Malawi Law Society (MLS) incorporated on September 7 2023.

It is expected to roll out before the end of this year, according to one of its directors Patrick Mpaka, who is also MLS president.

Speaking in an interview in Blantyre on Friday, he said the firm will ensure speedy and confidential resolution of commercial disputes that clog the High Court of Malawi Commercial Division.

Said Mpaka: “It will help to relieve the courts [High Court of Malawi Commercial Division] and make Malawi a business friendly environment.

“It [the firm] establishes and seeks to maintain a private sector-led neutral and independent facility for the resolution or settlement of commercial, investment and other disputes by way of arbitration, mediation and like processes as opposed to litigation in the courts.”

He said the firm will help to improve the local business environment by ensuring that arbitration, mediation, conciliation and other alternative dispute resolution mechanisms are institutionalised.

On September 5 and 6 this year, the business community in collaboration with MLS are expected to hold a symposium in Lilongwe to create awareness on the rolling of the firm.

The symposium is expected to bring together local businesses and other professionals to discuss modalities of the firm and how businesses can take part.

Sparc Systems Limited, an information and communications technology firm, which has contributed 10 million for the holding of the symposium, said they believe in the importance of the symposium and the firm.

Sparc Systems Limited technical director Chikondi Koloko said the firm will provide numerous benefits for the business community as it will ensure transparency and speedy resolution of commercial disputes.

“The business community will be the ultimate beneficiary of this symposium and the centre and it is something that needs to be supported,” he said.

According to  Miac information booklet, the symposium seeks to inform the local business community and professional bodies on the state of development of the centre and the direction the initiative is taking.

In 2021, the Malawi Government signed up to the New York Convention of 1958, becoming the 167th country to be part of the international agreement for resolving disputes in commerce outside the court system.

The Malawi Parliament passed the International Arbitration Act of 2023 which President Lazarus Chakwera signed into law.

This means Malawi qualifies as a suitable jurisdiction in which commercial disputes can be resolved through arbitration as an alternative to litigation.