Arbitration in Zimbabwe: How It Works and When to Choose It

When a commercial relationship breaks down, going to court is not the only option. Arbitration allows parties to have their dispute decided privately by an independent arbitrator, with a binding outcome that can be enforced. For businesses — particularly those dealing across borders — it is often the preferred way to resolve disputes.

What is arbitration?

Arbitration is a form of alternative dispute resolution in which the parties agree to refer their dispute to one or more arbitrators instead of a court. The arbitrator hears evidence and argument, then issues a decision called an award. Unlike mediation, where a neutral third party helps the parties reach their own settlement, an arbitrator decides the dispute.

The legal framework in Zimbabwe

Arbitration in Zimbabwe is governed by the Arbitration Act [Chapter 7:15], which adopts the UNCITRAL Model Law — an internationally recognised framework used in many jurisdictions. This gives domestic and foreign parties a familiar, predictable set of rules covering the arbitration agreement, the appointment of arbitrators, the conduct of proceedings, and the recognition and enforcement of awards.

Zimbabwe is also a party to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which supports the enforcement of awards across the many countries that have signed it.

When does arbitration make sense?

• Cross-border transactions — parties from different countries often prefer a neutral forum rather than the courts of either party.
• Confidential matters — arbitration is generally private, which helps protect commercial information and reputations.
• Technical disputes — the parties can choose an arbitrator with expertise in the relevant industry, such as construction, mining or finance.
• Need for finality — awards are binding and the grounds for challenging them are deliberately narrow.

How the process typically works

1. Notice of arbitration. One party notifies the other that it is referring the dispute to arbitration under their agreement.
2. Appointment of the tribunal. The arbitrator(s) are appointed in the way the agreement or the applicable rules provide.
3. Procedural directions. The tribunal sets a timetable for written statements, documents and any hearing.
4. Exchange of submissions and evidence. Each party sets out its case and supporting evidence.
5. Hearing. Witnesses and experts may be heard, and legal argument presented.
6. The award. The tribunal issues a written decision that binds the parties.

Drafting an effective arbitration clause

Many difficulties in arbitration stem from vague clauses. A well-drafted clause should address:

• the scope of disputes covered (for example, “any dispute arising out of or in connection with this agreement”);
• the seat (legal place) of arbitration, which determines the supporting court and procedural law;
• the number of arbitrators and how they are appointed;
• whether institutional rules apply or the arbitration will be ad hoc;
• the language of the proceedings and the governing law of the contract.

Is arbitration always the right choice?

Not always. Arbitration can be costly for smaller claims, and the limited right of appeal cuts both ways. In some cases a negotiated settlement or mediation may preserve the relationship at lower cost, while some matters — such as urgent interim relief — may still require the courts. The right approach depends on the value of the dispute, the parties involved and the commercial relationship.

Mpofu Law Chambers advises on commercial mediation and arbitration, including international arbitration and cross-border commercial disputes, and can help you draft dispute resolution clauses before problems arise.