Arbitration: what it is and why it matters

Arbitration is a private way to solve a legal fight without going to a public court. Instead of a judge, you pick one or more neutral experts — arbitrators — to hear both sides and issue a binding decision. It’s popular for business disputes, construction claims, sports issues and cross-border contracts because it’s usually faster and more predictable than court battles.

How arbitration works

First, you need an arbitration clause in your contract. That clause says that if a dispute comes up, it goes to arbitration instead of court. If there’s no clause, parties can still agree later to arbitrate. Once arbitration starts, the tribunal is formed, procedures are set, and parties exchange documents and evidence. Hearings can be in person or online. The arbitrator issues an award, which usually becomes final and binding.

One major advantage is enforceability. Thanks to the 1958 New York Convention, arbitration awards can be enforced in more than 160 countries. That matters a lot when one party is in a different country — you’re more likely to collect on a win than with a local court judgment.

Pros, cons and key choices

Why pick arbitration? You get private proceedings, tailored procedures, expert decision-makers, and often a quicker timetable. You can also limit appeals and keep sensitive info confidential. Downsides? Costs can be high if you choose big international tribunals or long panels. Arbitrations can also drag on if parties fight over procedure, and there’s limited scope to appeal a bad award.

Picking the right arbitrator matters. Look for someone with subject-matter experience and a reputation for decisive, fair rulings. Think about number of arbitrators (one is cheaper, three can feel more balanced), seat of arbitration (which country’s law governs the process), and language. All of these affect cost, timing, and enforceability.

In Africa, many countries are New York Convention members, so arbitration is a solid route for cross-border deals. Several regional centres and rules — such as ICC, LCIA, and local arbitration centres — offer options depending on budget and the dispute’s scale.

Want to use arbitration smartly? Put a clear arbitration clause in your contracts that names the seat, rules, and number of arbitrators. Set realistic timelines and shared budgets. Keep communication focused and document everything. If the other side seems likely to stall, include interim relief options and consider security for costs.

If your dispute is about family law, criminal issues, or some public-law matters, courts may still be the right place. When in doubt, talk to a lawyer who knows arbitration and the law where enforcement is needed.

Arbitration won’t fix every problem, but for many businesses it’s a faster, private route to finality and enforceable outcomes. Consider your deal’s risk, the countries involved, and pick rules and people who get the job done.