Arbitration in the United Republic of Tanzania has existed since the pre-independence era. The first Arbitration Act in the Tanzanian territory was enacted by the British colonialists in 1932, namely the Arbitration Ordinance of 1932. The implementation of the Arbitration Ordinance was supplemented by the Arbitration Rules, which came in force in 1957.

Although Tanzania is a state-party to many international arbitration treaties, such as the ICSID Convention, the UNCITRAL Model Law and the New York Convention, the Arbitration Ordinance did not contain most of the principles contained in these international treaties.

The Arbitration Ordinance was repealed by Chapter 15 of the Arbitration Act, 2020 (Revised Edition of 2023 of the Laws of Tanzania) (“AA 2020”). The AA 2020 incorporates all the main principles of international arbitration as set out in those treaties.

1.1 Advantages

The advantages of commercial arbitration in Tanzanian law include

• speedy resolution of dispute which helps businesses avoid delays;
• allows for resolution by an arbitrator(s) with specialised industry knowledge;
• confidentiality — section 36A of AA 2020 provides a clear confidentiality requirement, as opposed to the public nature of traditional court proceedings; and
• cost-effectiveness — the law clearly stipulates the arbitration costs to be expected by the parties.

1.2 Disadvantages and common pitfalls

There is no option for expedited procedure (i.e. fast tracking the arbitration process). This is only possible if the arbitration agreement provides for it. However, the expedited procedure is only available under the arbitration rules of the Tanzania Institute of Arbitrators (TIArb Rules), where the value of the matter does not exceed TZS 15,000,000 (rule 22).

1.3 Distinctive features

The most distinctive features of arbitration in Tanzania, particularly following the comprehensive AA 2020, are

• the strong emphasis on party autonomy and confidentiality;
• a dedicated national institutional framework; and
• a strong pro-enforcement stance for both domestic and foreign arbitral awards.

2. Principal laws relating to international arbitration in Tanzania

2.1 Legal framework

International arbitration is governed by:

• Chapter 15 of the Arbitration Act (Revised Edition 2023);
• Chapter 33 of the Civil Procedure Code Act (Revised Edition 2023), which recognises alternative dispute resolution (ADR) mechanisms including arbitration as means of dispute settlement;
• Arbitration (Rules of Procedure) Regulations, Government Notice No. 146 of 2021;
• international treaties to which Tanzania is a state party including bilateral investment treaties; and
• Case Law. Generally, arbitral tribunals in Tanzania are not bound by the rules of stare decis or precedent. However, arbitral tribunals may (and do) apply case law decided by other tribunals to interpret certain principles in the cases they administer.

2.2 What qualifies under domestic law as “international arbitration” (and is there a specific statute?)

Under the AA 2020, international arbitration means an arbitration relating to disputes arising out of legal relationships, whether contractual or not, considered as commercial under the law in force in the United Republic of Tanzania and where at least one of the parties is:

• an individual who is a national of, or habitually resident in, any country other than the United Republic of Tanzania;
• a body corporate which is incorporated in any country other than the United Republic of Tanzania;
• an association or a body of individuals whose central management and control is exercised in any country other than the United Republic of Tanzania; or
• the Government of a foreign country.

2.3 Ratification of the New York Convention

The United Republic of Tanzania ratified the New York Convention on 13 October 1964.

2.4 Ratification of the ICSID Convention

The United Republic of Tanzania signed the ICSID Convention 10 January 1992 and ratified it on 18 May 1992. This Convention entered into force in the United Republic of Tanzania on 17 June 1992.

2.5 Other treaties relating to arbitration

• The UNCITRAL Model Law on International Commercial Arbitration (1985). Tanzania has not ratified the UNCITRAL Model Law on International Commercial Arbitration as a treaty, but it has incorporated many of its principles into its national arbitration laws, particularly through the Arbitration Act of 2020.
• The Multilateral Investment Guarantee Agency (MIGA). Tanzania signed MIGA on 24 January 1991.
• The African Trade Insurance Agency (ATIA). This provides investment guarantees against Commercial and non-commercial risks. Tanzania signed the Host Country Agreement with the African Trade Insurance Agency (ATI) on 17 December 2009. This agreement paved the way for the launch of an ATI local office in 2010.
• Bilateral investment treaties (BITs). The United Republic of Tanzania has entered into BITs with many countries, and they provide for the international arbitration as dispute resolution mechanisms.

2.6 Choice of forum for intra-EU dispute settlement

The United Republic of Tanzania is not a member of the EU; however, it has entered into BITs with individual EU parties.

2.7 Is the municipal law governing arbitration based on UNCITRAL Model Law?

Tanzania enacted an arbitration law in 2020 (i.e. AA 2020). This legislation incorporates many principles that are set out by the UNCITRAL Model Law.

2.8 Recent amendments or reforms in arbitration laws

None.

3.1 Presence of local arbitration institutions

There are four arbitration institutions in Tanzania namely:

• The Tanzania Arbitration Centre (TAC). Established in 2020 via the AA 2020. In 2021, the Arbitration (Rules of Procedure) Regulations, were promulgated via Government Notice No. 146 of 2021;
• The National Construction Council (NCC). NCC is a government institution established in 1979 under the National Construction Council Act. The NCC has coordinated dispute resolution since 1982. In 2001, NCC adopted the arbitration rules.
• TIArb. TIArb is a non-governmental organisation registered on 15 July 1997 under Chapter 337 of the Societies Act with the main function of facilitating the resolution of commercial disputes in Tanzania. It has its own arbitration rules which were revised in 2022.
• The Tanzania International Arbitration Centre (TIAC). TIAC was established in 2019 under the Chapter 212 of the Companies Act, as a company limited by guarantee. It is governed by the AA 2020.

3.2 Does the London Court of International Arbitration (LCIA) have a local office?

No.

3.3 Does the Permanent Court of Arbitration (PCA) have a local office?

No.

3.4 Does the ICC International Court of Arbitration have a local office?

No.

3.5 Does the International Centre for Dispute Resolution (ICDR) have a local office?

No.

3.6 Agreement entered into with local offices of international arbitration institutions

No.

The reference in an agreement to a written form of arbitration clause or to a document containing an arbitration clause constitutes an arbitration agreement if the reference is sufficient as to make that clause part of the arbitration agreement (section 9). An arbitration agreement that forms or was intended to form part of another agreement (whether or not in writing) shall not be regarded as invalid, non-existent or ineffective because that other agreement is invalid, did not come into existence or has become ineffective. In this regard, the arbitration agreement is treated as a distinct agreement (section 10). The arbitration agreement is not discharged by the death of a party but rather it may be enforced by or against the representative of that party.

4.1 Requirements as to content and form

The AA 2020 only applies where the arbitration is in writing (section 10). The arbitration agreement is deemed to be in writing where:

• the agreement is in writing whether or not it is signed by the parties;
• agreement is made by exchange of communication in writing; or
• the agreement is evidenced in writing. Where parties agree, otherwise than in writing, by the reference to the terms that are in writing, they are considered to have made an agreement in writing (section 10(4)).

An agreement shall be deemed to have been evidenced in writing where the agreement made otherwise than in writing is recorded by one of the parties, or by a third party, with the authority of the parties to the agreement. Anything that is written or in writing includes records made by any means.

4.2 Validity of arbitration agreements

The validity of an arbitration agreement is governed by Chapter 345 of the Law of Contract Act, which under section 10 provides that an agreement is a valid contract if it is entered into with free consent; the parties are competent to contract; and there is lawful object and lawful consideration.

4.3 Special formalities

There are no special formalities beyond those discussed above.

4.4 Governing law

The arbitration agreement may be governed by the AA 2020 and Chapter 345 of the Law of Contract Act which governs all other general contracts as well where the where the seat of the arbitration is in Tanzania (section 7). If the governing law of the main contract is different from Tanzanian law, the AA 2020 shall not apply unless specifically agreed under the arbitration agreement.

Even if the seat of arbitration chosen is outside Tanzania, certain sections of the AA 2020 may still apply to arbitration including:

• section 15 (on the stay of proceedings);
• section 73 (on the enforcement of awards);
• section 51 (regarding court powers including taking and preserving evidence, making orders relating to property which is subject to proceedings).

In addition, the provisions of sections 12 (separability of arbitration agreement) and 13 (agreement not discharged by death of a party) shall apply where the law applicable to the arbitration agreement is the law of Mainland Tanzania even where the seat of the arbitration is outside Mainland Tanzania or has not been designated or determined.

Chapter 33 of the Civil Procedure Code Act of the Revised Edition of 2019 of the Laws of Tanzania (CPC) applies to the mandatory arbitration that arises when a civil suit is referred to arbitration, as well as to the filing of arbitral awards that do not fall under the Arbitration Act (Order VIII, clause 24). While the Arbitration Act governs the general procedures for most arbitrations, the CPC provides a default set of rules and procedures for court-referred or other specific types of arbitration and award filing where the Arbitration Act does not provide for the contrary. Any matter in dispute referred to arbitration under a court order shall be dealt with as provided for under the Second Schedule to the CPC (Order VIII, clause 40).

The core principle is party autonomy (i.e. parties can generally agree to arbitrate commercial disputes), but certain matters involving public interest or specific statutory powers are reserved for the courts.

5.1 Applicable restrictions

There are certain types of disputes that cannot be settled by arbitration in Tanzania. These include land disputes, matters of public law such as criminal law, and matters that are exclusively regulated by statutory law such as matters relating border disputes in the mining, oil and gas sector, which are adjudicated by the government authority. Land matters are exclusively determined by land tribunals. In addition, family law and inheritance legal matters are also not arbitrable and have to be referred to the competent courts of law.

6.1 Stay of proceedings

Under section 13(1) of the AA 2020, a party to an arbitration agreement against whom legal proceedings are brought, whether by way of claim or counterclaim in respect of a matter which under the agreement is to be referred to arbitration may, upon notice to the other party to the proceedings, apply to the court in which the proceedings have been brought to stay the proceedings so far as they concern that matter. The court seized with such a matter shall, unless it is satisfied that the arbitration agreement is null and void, invalid or incapable of being performed, grant a stay on any application brought before it.

6.2 Anti-suit injunctions

Under section 12 of the AA 2020, a court, before which an action is brought in a matter that is the subject of an arbitration agreement shall, where a party to the arbitration agreement or any person claiming through or under them, so applies not later than the date of submitting their first statement of claim on the substance of the dispute and notwithstanding any judgment, decree or order of the superior court, refer the parties to arbitration unless it finds that prima facie no valid arbitration agreement exists. The application shall not be entertained unless it is accompanied by the original arbitration agreement or a duly certified copy thereof. Where the original arbitration agreement or a certified copy is not available to the party applying for reference to arbitration and the agreement or certified copy is retained by the other party, then, the applying party shall, in the manner set out under written law, apply to court to call upon the other party to produce the original arbitration agreement or its duly certified copy.

7.1 Restrictions on the parties’ freedom to choose arbitrators

Arbitration in Tanzania does not impose any restrictions on the parties’ freedom to choose arbitrators. The AA 2020 clearly provides that parties may agree on the procedure for appointing the arbitrators, including the procedure for appointing the chairman and umpire (section 19).

7.2 Requirement of arbitrator independence and impartiality

The Tanzanian arbitration law requires the arbitrator to be independent of the parties and impartial. Under the AA 2020, a party to arbitration proceedings can apply to the arbitral tribunal for the removal of arbitrator who on the ground that there are circumstances which give rise to justifiable doubts as to his impartiality (section 28). The challenge to an arbitrator on the ground of not being independent or impartial must be brought to the arbitral tribunal within fourteen days in accordance with Regulation 24(1) of the Arbitration (Rules of Procedure) Regulations 2021 (hereinafter “the Regulations”). Furthermore, the Regulations require that the person to be appointed as an arbitrator does not have a family relationship based on descent and marriage down to the third generation, with any of the parties in dispute, and that they do not possess financial interest or other interest in the result of the arbitration resolution (Regulation 14).

7.3 Mandatory rules applicable to the appointment process

There are mandatory rules applicable to the appointment process. An arbitrator who is appointed to determine the dispute under the Regulations must sign a Statement of Independence in Form No.1 of the Fourth Schedule to the Regulations (Regulation 15). In addition, where the dispute is governed by Tanzanian law, at least one arbitrator (preferably but not necessarily the chairman) must be a lawyer who resides in and is acquainted with the laws of Tanzania, according to the arbitration agreement (Regulation 16).

7.4 Appointment mechanism in the absence of party agreement or applicable institutional rules

Where an arbitration agreement does not provide for the appointment of arbitrator, parties may agree on the modality of appointment of arbitrator. If the parties fail to make an agreement, a party to the arbitration agreement may, upon notice to the other party, apply to the Tanzania Arbitration Centre (TAC) which may:

• give directions as to the making of any necessary appointment;
• direct that the arbitral tribunal shall be constituted by such appointment, or any one or more of them, as has been agreed; or
• make any necessary appointment, whereby this appointment made by TAC shall have effect as if it was made by the agreement of the parties (section 20).

7.5 Mandatory rules applicable to the replacement process

There are mandatory rules applicable to the replacement process. Under section 26 of the AA 2020, a party to arbitral proceedings may, upon notice to the other party, to the arbitrator concerned and to any other arbitrator, apply to TAC to remove an arbitrator on any of the following grounds:

• there are circumstances which give rise to justifiable doubts as to their impartiality;
• they do not possess the qualifications required by the arbitration agreement;
• they are physically or mentally incapable of conducting the proceedings or there are justifiable doubts as to their capacity to do so; or
• they have refused or failed to:
  • properly conduct the proceedings;
  • use all reasonable dispatch in conducting the proceedings; or
  • make an award and, as a result, substantial injustice has been, or is likely to be, caused to the applicant.

The above-cited section of the AA 2020 has been transposed into and amplified by Regulation 25 (Replacement of Arbitrator) of the Regulations which provides among others, that after an arbitral tribunal has been constituted and proceedings have begun, its composition shall remain unchanged. Provided, however, that if an arbitrator dies, become incapacitated, resigns or is disqualified, the resulting vacancy shall be filled. Whenever necessary, a substitute arbitrator shall be appointed pursuant to the procedure provided for under Regulation 13, which applies to the appointment of the arbitrator being replaced.

The Regulations further provide that arbitral proceedings shall, unless otherwise agreed by the parties, be suspended pending the replacement of an arbitrator and that whenever a substitute arbitrator is appointed, the arbitral tribunal shall, having regard to any observations of the parties, determine in its sole discretion whether all or part of any prior hearings are to be repeated (Regulation 25(7)).

7.6 Mandatory disclosure obligations

Under the Regulations, there are mandatory disclosure requirements. Regulation 23(2) provides that an arbitrator candidate shall submit to TAC their curriculum vitae and a written statement of willingness to act as arbitrator within a period of seven days from the date of their designation, in which statement they shall disclose any circumstances likely to give rise to justifiable doubts as to their impartiality or independence.

7.7 Grounds for challenge

The grounds for challenging an arbitrator’s appointment are as follows:

• circumstances giving rise to justifiable doubt as to the arbitrator’s impartiality;
• the arbitrator being physically or mentally incapable of conducting the proceedings (or there are justifiable doubts as to their capacity to do so);
• the arbitrator having refused or failed to properly conduct the proceedings;
• the arbitrator not being accredited or registered in terms of the Reconciliation, Negotiation, Mediation and (Practitioners Arbitration Accreditation) Regulations;
• the arbitrator having a family relationship based on descent and marriage down to the third generation, with any of the parties in dispute;
• the arbitrator possessing a financial or other interest in the outcome of arbitration;
• the arbitrator not being chosen and named by the parties in the arbitration agreement;
• the arbitrator not being a person of high moral character and with no recognised competence in the fields of law, commerce, industry or finance, who may not be relied upon to exercise independent judgment.

7.8 Mandatory rules governing the challenge of arbitrators

Section 26 (Power to remove arbitrator) of the AA 2020 and Regulation 24 (Challenge and disqualification of an arbitrator) of the Regulations are mandatory.

7.9 Removal

Removal of the arbitrator is governed by section 26 of the AA 2020, which provides that a party to arbitral proceedings may, upon notice to the other party, to the arbitrator concerned and to any other arbitrator, apply to TAC to remove an arbitrator on any of the following grounds:

• there are circumstances which give rise to justifiable doubts as to his impartiality;
• they do not possess the qualifications required by the arbitration agreement;
• they are physically or mentally incapable of conducting the proceedings or there are justifiable doubts as their capacity to do so; or
• they have refused or failed to:
  • properly conduct the proceedings;
  • use all reasonable dispatch in conducting the proceedings; or
  • make an award and substantial injustice has been, or is likely to be, caused to the applicant.

Where there is an arbitral tribunal or other institution or person vested by the parties with power to remove an arbitrator, TAC shall not exercise its power of removal unless satisfied that the applicant has first exhausted any available recourse to that institution or person (section 26(2)). Where TAC removes an arbitrator, it may make such directives as it thinks fit with respect to:

• their entitlement to any fee or expense; or
• the repayment of any fees or expenses already paid.

The arbitrator against whom the application is brought shall be entitled to be heard by TAC before it makes any order under this section.

7.10 Liability and immunity of arbitrators

Under Regulation 52 of the Regulations, arbitrators are not liable to any person for negligence, act or omission in connection with an arbitration governed by the Regulations. Furthermore, arbitrators, shall not be under an obligation to make a statement in connection with an arbitration governed by the Regulations. The exclusion from liabilities also extends to TAC, its Board and the Secretariat.

The AA 2020 also provides under section 31(1) that, except as provided for in section 26 (see Section 7.9, above), an arbitrator shall not be liable for anything done or omitted in the discharge or purported discharge of his functions as arbitrator unless the act or omission is proven to have been done in bad faith or professional negligence. The immunity also applies to an employee or agent of an arbitrator as it applies to the arbitrator. However, the immunity granted under section 31(1) does not affect any liability incurred by an arbitrator by reason of his resignation. The parties may agree with an arbitrator as to the consequences of his resignation as regards to any liability incurred by them (section 27).

In Tanzania, courts provide assistance in arbitration through tasks such as staying court proceedings to allow arbitration to proceed, and by enforcing or setting aside arbitral awards as specifically stated below. The courts also assist in the appointment, removal, or challenge of an arbitrator, though they generally limit their intervention to ensure the arbitration process itself is respected as an agreement between the parties.

8.1 Interim measures

8.1.1 Overview of interim measures

The court has power to make orders in relation to arbitral proceedings on different matters (section 46(1)). The court powers to make orders in this case include the power to grant an interim injunction. However, these powers of the court are not unlimited. Where the case is not one of urgency, the court shall act only on the application of a party to the arbitral proceedings and upon notice to the other parties and to the arbitral tribunal, made with the permission of the arbitral tribunal or the agreement in writing of the other parties. These courts’ power cannot be exercised where the subject of the order is already addressed by the parties under the arbitration agreement.

Under section 46(6) the law provides that an order made by the court under this section shall cease to have effect in whole or in part on any order of the arbitral tribunal or other institution or person having power to act in relation to the subject matter of the order.

8.1.2 Relevance of availability of emergency arbitrator mechanism

The emergency arbitrator (EA) mechanism is important in Tanzania as it provides a crucial avenue for obtaining urgent interim relief to prevent irreparable harm before a full arbitral tribunal is constituted. This mechanism allows parties to secure measures like freezing assets or preserving evidence without resorting to potentially slower national courts.

8.2 Taking of evidence

The courts’ power in connection with ongoing arbitral proceedings may be exercised for the purpose of preserving evidence (section 46(2)(b)). This power to make an order to preserve evidence can be exercised by courts where the case is one of urgency and an application has been made to the court.

8.3 Appointment or challenge of arbitrators

Where an arbitration agreement does not provide for the appointment of arbitrator, parties may agree on the method of appointment of arbitrator. If they fail to agree, either party may, upon notice to the other party, apply to TAC which may:

• give directions as to the making of any necessary appointment;
• direct that the arbitral tribunal shall be constituted by such appointment, or any one or more of them, as has been agreed; or
• make any necessary appointment.

Generally, power to remove an arbitrator is vested in a TAC. However, parties may under the arbitration agreement, designate a court or any person to remove an arbitrator (section 26(2)). In which case TAC shall have no such powers, unless satisfied that the applicant has first exhausted any available recourse to that court or person.

8.4 Other available assistance

The courts in Tanzania may also:

• refer the parties to arbitration where the arbitration agreement exists (section 12);
• stay the proceedings in respect of the matter which under the arbitration agreement is to be referred to arbitration;
• grant leave for the enforcement of the arbitral award (section 68);
• make determination of an application to challenge award on substantive jurisdiction made under section 69;
• make determination of an application to challenge award on serious irregularities made under section 70;
• determine appeal under sections 72 and 73;
• make orders in relation to the service of documents pursuant to section 82(2).

9.1 Domestic scope of sovereign immunity from jurisdiction

There are three main laws that govern state and or diplomatic immunity namely:

• Chapter 5 of the Government Proceedings Act (Revised Edition 2029). This act is a central piece of legislation governing the state’s relationship with legal proceedings.
• Chapter 356 of the Diplomatic and Consular Immunities and Privileges Act (Revised Edition 2023). This act grants immunities and privileges to foreign diplomatic and consular representatives, as well as to Tanzanian representatives abroad.
• Chapter 245 of the Executive Agencies Act (Revised Edition 2023). This act allows for the creation of agencies that can sue and be sued in contract, but includes a prohibition on the execution or attachment of government property to enforce payments.
• Chapter 197 of the Bank of Tanzania Act (Revised Edition 2023). This Act provides among others that, assets of the Tanzanian government held by or managed by the Bank are immune from enforcement, attachment, or other execution processes.

9.2 Immunity from execution

Tanzania enjoys immunity from execution of its sovereign assets, particularly those held by the Bank of Tanzania. However, this immunity is not absolute: the government can consent to suits, but this does not automatically constitute a waiver of immunity from execution. For a party to enforce a judgment against Tanzania, they must typically secure an express waiver of immunity from execution, which may also be implicitly granted through an arbitration clause.

Under the Tanzanian arbitration law, the arbitral tribunal may conduct hearings at any place that it considers appropriate. However, in making the decision regarding the choice of such a place, the arbitral tribunal is obliged to consult with the parties. The award made by the arbitral tribunal at such a place will be deemed as having been made at the place of arbitration.

A virtual hearing is also permitted under the Tanzanian arbitration law. Specifically, Rule 17.4.3 of the TIArb Arbitration Rules, 2022 provides that arbitral tribunals may conduct case management meetings with the parties, in person or virtually, to discuss the procedures most appropriate and efficient for the case. TIArb also provides facilities for virtual hearings.

The arbitral tribunal may make an award dismissing the claim where the claimant fails to actively pursue his case without reasonable grounds. Similarly, if the party fails to attend an oral hearing or fails to submit written evidence/make submissions without sufficient cause, the arbitral tribunal may continue with the proceedings (section 48).

Generally, arbitral proceedings are required to be conducted in camera (section 36A). However, disclosure may be required or permitted in certain circumstances, including:

• to a professional or advisor of any of the parties;
• to ensure a party has a full opportunity to present its case, as required under the arbitration rules;
• for the establishment or protection of a party’s legal rights in relation to a third party;
• for the making and prosecution of an application to a court;
• where the disclosure is in accordance with an order made or summons issued by a court; or
• where disclosure is required by law.

An arbitral tribunal may make more than one award at different times on different aspects of matters to be determined (section 49). The tribunal may also award simple or compound interest on whole or part of the amount awarded (section 51). An arbitral tribunal may refuse to deliver an award to the parties where parties fail to make full payment of the fees and expenses of the arbitrators (section 58).

12.1 Requirements as to content and form

Section 59 of the AA 2020 provides that parties may agree on the form of an award. In the absence of such agreement the award shall:

• be in writing and signed by all the arbitrators or those assenting to the award;
• contain the reasons for the award unless it is an agreed award or the parties have agreed to dispense with the reasons; and
• state the seat of the arbitration and the date when the award is made.

The requirements as to the content and form of the award is also stipulated under the Arbitration (Rules of Procedure) Regulations, which state inter alia that the award of the arbitral tribunal shall be passed based on the legal stipulations or on justice and propriety. The form of award shall be as provided in Form No. 7 of the Fourth Schedule to the said Regulations (Regulation 47). The award shall be signed by the arbitrators and shall contain the date and place where it was rendered. Where there are three arbitrators and one of them fails to sign, the award shall state the reason for the absence of that signature (Regulation 48).

12.2 Time limit

The time limit for making an award is provided under the Regulations. Unless otherwise agreed by the parties, the arbitral tribunal, shall issue its final award within thirty days of the conclusion of the hearings, except in a case where the arbitral tribunal or the sole arbitrator, considers that the period may be extended appropriately. Where the arbitral tribunal intends to extend the time of issuing an award, it shall notify the parties using Form No. 5 as prescribed in the Fourth Schedule to the Regulations (Regulation 43).

12.3 Remedies

Section 50 of the AA 2020 provides that the parties may agree on the powers exercisable by the arbitral tribunal as regards to remedies. Unless the parties agree otherwise, the arbitral tribunal shall have the power to:

• make a declaration as to any matter to be determined in the proceedings;
• order the payment of a sum of money (in any currency);
• order a party to do or refrain from doing anything;
• order specific performance of a contract (other than a contract relating to land); or
• order the rectification, setting aside or cancellation of a deed or other document.

13.1 Interpretation and correction of awards

The parties may agree on the powers of the arbitral tribunal to correct an award or make an additional award and if the parties fail to agree, the arbitral tribunal may, on its own initiative or on the application of a party:

• correct an award so as to remove any clerical mistake or error arising from an accidental slip or omission, or clarify/remove any ambiguity in the award; or
• make an additional award in respect of any claim, including a claim for interest or costs, which was presented to the arbitral tribunal but was not dealt with in the original award so long as the arbitral tribunal first affords the other parties a reasonable opportunity to make representations to it (section 59).

The application for the correction of award must be made within 28 days from the date of the award or such longer period as the parties may agree and any correction of an award shall be made

• in the case of an application of a party, within 28 days from the date the application was received by the arbitral tribunal;
• where the correction is made by the arbitral tribunal on its own initiative, within 28 days from the date of the award; or
• in either case, such longer period as the parties may agree.

Furthermore, any additional award shall be made within 56 days from the date of the original award or such longer period as the parties may agree. Any correction of an award shall form part of the award

13.2 Challenge of an award

Challenging an award may be based on substantive jurisdiction or on serious irregularity. The application to challenge the award is made to the court. A party wanting to challenge the award is required to send notice to the other party and the arbitral tribunal prior to making an application to the court. The applicant may challenge the award of the arbitral tribunal as to its substantive jurisdiction; or seek an order declaring an award made by the arbitral tribunal on the merits to be of no effect, in whole or in part, on grounds that the arbitral tribunal did not have substantive jurisdiction (section 69). On determination of an application to challenge an award on substantive jurisdiction, under this section, the court may:

• confirm the award;
• vary the award; or
• set aside the award in whole or in part.

Under section 70(2), the law defines serious irregularity for the purposes of challenging an award as an irregularity of one or more of the following kinds which the court considers has caused, or is likely to cause, substantial injustice to the applicant:

• failure by the arbitral tribunal to comply with section 35;
• the arbitral tribunal has exceeded its powers otherwise than by exceeding its substantive jurisdiction;
• failure by the arbitral tribunal to conduct the proceedings in accordance with the procedure agreed by the parties;
• failure by the arbitral tribunal to deal with all the issues that were raised before it;
• any arbitral institution or other institution or person vested by the parties with powers in relation to the proceedings or the award exceeding its powers;
• uncertainty or ambiguity as to the effect of the award;
• the award being obtained by fraud or procured in a manner that is contrary to public policy;
• failure to comply with the requirements as to the form of the award; or
• any irregularity in the conduct of the proceedings or in the award which is admitted by the arbitral tribunal or by any arbitral or other institution or person vested by the parties with powers in relation to the proceedings or the award.

The court may, where it determines that there is a serious irregularity affecting the arbitral tribunal, the proceedings or the award:

• remit the award to the arbitral tribunal, in whole or in part, for reconsideration;
• set aside the award in whole or in part; or
• declare the award to be of no effect, in whole or in part. However, the court shall not exercise its power to set aside or to declare an award to be of no effect, in whole or in part, unless it is satisfied that it will be inappropriate to remit the matters in question to the arbitral tribunal for reconsideration.

The law does not specify the time limit within which the party has to bring an application to challenge the award.

13.3 Recognition and enforcement proceedings

The courts shall recognise as binding and enforceable a domestic arbitral award or foreign arbitral award where an application in writing has been made to the court (section 73). However, the enforcement of the award shall be refused by the court if it is proven that:

• parties to the arbitration agreement, pursuant to the law applicable lacked capacity to enter into the agreement; or were not properly represented;
• the arbitration agreement is not valid under the law to which the parties have subjected it or, failing any indication of that law, under the law of the state where the arbitral award was made;
• the party against whom the arbitral award is invoked was not given proper notice of the appointment of an arbitrator or of the arbitral proceedings or was otherwise unable to present his case;
• the arbitral award deals with a dispute not contemplated by, or not falling within, the terms of the reference to arbitration, or it contains decisions on matters beyond the scope of the reference to arbitration, provided that, if the decisions on matters referred to arbitration can be separated from those not so referred, the part of the arbitral award which contains decisions on matters referred to arbitration may still be recognised and enforced;
• the composition of the arbitral tribunal or the arbitral procedure was not in accordance with the agreement of the parties or, failing any agreement by the parties, was not in accordance with the law of the state where the arbitration took place; or

the arbitral award has not yet become binding on the parties or has been set aside or suspended by a court of the state in which, or under the law of which, that arbitral award was made.

13.4 Cost of enforcement

The cost of enforcing an arbitral award in Tanzania is not a fixed amount but depends on various factors, including the court fees, legal fees, and other expenses. The success of the enforcement process also depends on the discretion of the arbitral tribunal or court, which determines the recoverable costs, and the reasonableness of the costs incurred by the successful party. Key components include court fees, lawyer’s fees, and other incidental costs such as transportation and lodging, and these are subject to the tribunal’s or court's discretion on what is reasonable.

13.5 Enforcement of orders of emergency arbitrators

The enforcement of orders issued by emergency arbitrators in Tanzania remains a developing area with significant uncertainty, as the national legal framework does not explicitly provide for their direct enforcement. While the AA 2020 and its 2021 Regulations acknowledge the concept of an emergency arbitrator, their decisions are not automatically enforceable as court decrees.

Tanzania, as a party to the New York Convention, is obligated to enforce foreign arbitral awards, though the Convention has not been directly incorporated into domestic law through legislation. Enforcement is managed through the AA 2020 and its regulations, which provide the framework for an application to the High Court for recognition and enforcement of an award, subject to certain conditions, such as not being contrary to public policy. While the convention is not domesticated, courts can still apply it, as demonstrated in the enforcement of an ICC and other awards by Tanzania’s Court of Appeal.

14.1 Process for enforcing New York Convention awards

Tanzania ratified the New York Convention but has not domesticated it into domestic law, meaning it is not directly applicable by courts. Enforcement of foreign arbitral awards relies on the Arbitration Act 2020, which under section 83 of the AA 2020 requires awards to be filed with the High Court. Despite this gap, the High Court can still enforce awards, and the situation is expected to improve with recent efforts to update legislation, as seen with the Kundan Singh Construction Limited v. TANROADS, Civil Appeal No. 38 Of 2013. In this cited case, where the arbitration was conducted in Kenya, the court ruled that it was contrary to the public policy of Kenya because the arbitration was governed by Kenyan law, not Tanzanian law, as agreed in the contract. The court also upheld its jurisdiction to recognise and enforce arbitral awards regardless of the country of origin, even if the award was made in violation of the contract terms.

The principle of reciprocity is generally not a strict requirement for the enforcement of arbitral awards in Tanzania, due to its adherence to international conventions.

14.2 Grounds for resisting enforcement of New York Convention awards

Section 73(4) sets out various reasons or grounds on which the court may refuse to enforce a foreign award. These grounds include where the party against who the award has been invoked provides to the court the proof that:

• the parties to the agreement referred to in section 78 were, under the law applicable to them, under some incapacity, or the said agreement is not valid under the law to which the parties have subjected it or, failing any indication thereon, under the law of the country where the award was made;
• the party against whom the award is invoked was not given proper notice of the appointment of the arbitrator or of the arbitral proceedings or was otherwise unable to present his case;
• the award deals with a difference not contemplated by, or not falling within the terms of, the submission to arbitration, or it contains decisions on matters beyond the scope of the submission to arbitration, except that where the decisions on matters submitted to arbitration can be separated from those not so submitted, that part of the award which contains decisions on matters submitted to arbitration may still be enforced;
• the composition of the arbitral authority or the arbitral procedure was not in accordance with the agreement of the parties, or, failing such agreement, was not in accordance with the law of the country where the arbitration took place;
• the award has not yet become binding on the parties, or has been set aside or suspended by a competent authority of the country in which, or under the law of which, that award was made;
• the subject matter of the dispute is not capable of settlement by arbitration under the laws of Mainland Tanzania; or
• the enforcement of the award would be contrary to the public policy of Mainland Tanzania.

14.3 Enforcing non-Convention awards

The enforcement of non-convention (domestic) arbitral awards in Tanzania follows the same procedure that applies to a convention award, i.e. by filing the award in the High Court, which then makes it enforceable as an order of the court. This is governed by the section 78(1) of the AA 2020 and requires the arbitrator or a designated person to file the award and supporting documents with the court. If the award is not set aside or remitted by the court, it becomes a binding High Court decree, and a petition for enforcement can be filed to have the award executed as a judgment. 

15.1 Applicable to counsel

The AA 2020 does not impose standards for the conduct of arbitration counsel, but other professional rules are relevant. Rules for advocates in Tanzania are primarily governed by the Advocates (Professional Conduct and Etiquette) Regulations, 2018 and the Tanganyika Law Society (Ethics) Regulations, 2022. These rules mandate that advocates act with integrity, competence, and honesty in their dealings with clients, the court and the public. Key responsibilities include maintaining client confidentiality, avoiding conflicts of interest, being honest with clients and colleagues, and upholding the proper administration of justice. The Tanganyika Law Society is the Bar Association for the Tanzania Mainland.

15.2 Applicable to arbitrators

The Act does not prescribe specific professional or ethical rules for arbitrators beyond the duty of act fairly and impartially (see Section 7.7, above, to ensure confidentiality of the arbitral proceedings (section 36A). Arbitral institutions and bar associations have also published codes of conduct for arbitrators (e.g. TIArb Code of Conduct 2021). The IBA’s Guidelines on Conflicts of Interest have frequently been taken into account by Tanzanian courts, albeit they are not binding. Also, TIArb Regulations requires arbitrators to:

• be independent;
• adopt suitable procedures suitable to the circumstances of each particular case, avoiding unnecessary delay and expense;
• prior to accepting the appointment or nomination, consider whether they have the capacity, including sufficient competency and availability.

16.1 Applicable regulatory requirements

Third-party funding in arbitration is not explicitly prohibited in Tanzania, but there are no specific regulations governing it. This means parties can privately arrange for third-party funding from entities like finance companies, hedge funds, or specialist litigation funders, in exchange for a share of any award or a multiple of the invested capital. However, legal representatives of a party are not allowed to provide funding to avoid conflicts of interest.

16.2 Overview of the third-party funding market

There is no evidence found regarding third party funding in Tanzania.

There is specialist local administering institution, the National Construction Council (NCC), which for years it has administered arbitration in the construction industry, albeit mainly for domestic arbitration. Recently, the NCC’s scope has expanded beyond the construction sector.

17.1 Types of specialist arbitration

None.

17.2 Key legal principles

Key principles of arbitration under the NCC include:

• party autonomy, where parties can agree on dispute resolution procedures;
• the competence-competence principle, allowing the tribunal to rule on its own jurisdiction;
• the need for impartiality and efficiency, ensuring fair resolution without unnecessary delay or expense;
• confidentiality;
• limited judicial intervention; and
• the finality and binding nature of the award.

17.3 Types of claim and defences typically brought in that area

Claims in arbitration under the NCC in Tanzania typically arise from construction-related disputes, such as those concerning payment, defects, delays, and breaches of contract. Common types of claims include:

• claims for unpaid amounts;
• the cost of rectifying defective work; and
• for damages resulting from delays or breaches of contract.

On the other hand, the common defences under the NCC arbitrations include:

• disputing the validity of the arbitration agreement itself;
• challenging the jurisdiction of the arbitral tribunal; and
• arguing the merits of the claims through the specific defence of absence of facts or law.

17.4 Issues and strategic considerations to take note of

Historically, the National Construction Council has administered local or domestic arbitration in the construction industry, and recently, its role has now expanded into other sectors. However, it is questionable whether its credentials are robust enough to administer international arbitrations.

The main trend is the significant modernisation of arbitration law and practice in Tanzania, driven by the Arbitration Act, 2020 which replaced the Arbitration Ordinance. Key developments include the establishment of the Tanzania Arbitration Centre, a requirement for arbitrator accreditation, and clearer procedures for enforcement of both domestic and international awards, including those governed by the New York Convention. The new law aims to enhance investor confidence, clarify the roles of courts and tribunals, and provide a more professional and credible arbitration framework.