Opinion and Analysis

Hasten dispute resolution

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Posted  Wednesday, August 15  2012 at  19:52

In Summary

  • Despite policy boasts that the integration was to be driven by the private sector, disputes are only anticipated to come from state actors betraying the pre-occupation with the EAC model that collapsed in 1977.
  • The organs of the community should now reform the justice system to allow traders to seek redress from the court.
  • The East Africa Legislative Assembly, in particular, needs to be at the forefront in championing changes to community statutes that help make the bloc a friendlier investment destination.
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The uncertainty surrounding the resolution of disputes between businesses operating in East African Community member countries needs to be resolved urgently.

At the heart of the issue is that the East African Court of Justice only has mandate to arbitrate on matters between states.

This leaves companies to pursue time-consuming proceedings in national courts when they have grievances against government agents in any of the five EAC member countries - Kenya, Uganda, Rwanda, Tanzania and Burundi.

By hoping to attract new investments and expansion of existing businesses without an elaborate dispute resolution mechanism on integration issues, EAC could be engaging in brinkmanship.

The oversight appears to have arisen from the mandate of the court not being reviewed to accommodate the challenges of running a customs union and a common market.

Despite policy boasts that the integration was to be driven by the private sector, disputes are only anticipated to come from state actors betraying the pre-occupation with the EAC model that collapsed in 1977.

The organs of the community should now reform the justice system to allow traders to seek redress from the court. After all, it is the businesses that stand to lose the most from lopsided policies or overzealous actions of government agencies.

The East Africa Legislative Assembly, in particular, needs to be at the forefront in championing changes to community statutes that help make the bloc a friendlier investment destination.