Ethiopia's New Arbitration Regime: A Bird's-eye View

1. Introduction

Investment in Africa and business deals with African parties are often made against a background of real and perceived risks.¹ Among other things, foreign parties often fear that African courts lack commercial focus, efficiency, and propriety that they are used to elsewhere.² They tend to prefer arbitration, for this reason, not to mention much higher chances of enforcement around the world. Many domestic businesses likewise see arbitration as a better alternative to litigation in courts. It is, therefore, believed that issuing laws that are conducive to arbitration can help countries promote legal security and thus bolster confidence in their commercial and investment environment.³