Legal experts from Herbert Smith Freehills and Baker McKenzie have pointed to South Africa’s 1965 Arbitration Act as a significant barrier to efficient arbitration proceedings within the country. The Act, according to lawyers from these firms, has been criticized for causing delays and granting excessive powers to the courts, which hampers the enforcement process and clogs the legal system. This situation threatens the appeal of South Africa as a viable hub for arbitration by allowing parties more opportunities to contest arbitration outcomes, potentially prolonging disputes.
Although South Africa introduced a separate International Arbitration Act in 2017 for international disputes, arbitration between local entities is still subject to the 1965 law. The old legislation’s provisions are seen as contrary to international best practices, raising concerns about South Africa’s credibility in the global arbitration landscape.
The question remains whether there will be any imminent reforms to address these challenges and enhance South Africa’s attractiveness for arbitration. For further details on this issue, you can access the full article here.