South Africa's SCA Reinforces Judicial Support For Arbitration Agreements

Emerging arbitration jurisdictions often face challenges in establishing themselves as credible and reliable seats for international arbitration with a key focus on achieving minimal judicial intervention. This however presents somewhat of a contradiction because the attitude of the court will generally only be evidenced through its published judgments.

This is why, when courts are involved, their decisions must be clear, consistent, and aligned with international best practice. In Industrial Development Corporation of South Africa Limited and Another v Kalagadi Manganese (Pty) Ltd, the Supreme Court of Appeal ("SCA") delivered a decisive judgment that reinforced the binding nature of arbitration agreements and underscored South Africa's adherence to international arbitration principles.