An international arbitration center that will settle business disputes in the Intergovernmental Authority on Development (IGAD) region is to be established and based in Djibouti. The decision was made during the Fifth General Assembly of IGAD Business Forum and it was passed unanimously by the participants; Ethiopia, Djibouti, Kenya, Uganda, Sudan, South Sudan and Somalia.
The forum highlighted the importance of a private mechanism in resolving business disputes rather than taking the state mechanisms such as regular courts. In its resolution, the assembly stated the creation of an international arbitration center in the region may contribute to improve the business environment and make the international business operators. The resolution further the arbitration center will give foreign more confidence in doing business in the IGAD region.
According to The Reporter, presidents and secretariats of chambers of commerce from Ethiopia, Djibouti, Kenya, Uganda, Sudan, South Sudan and Somalia have agreed Djibouti should host this arbitration center.
During the meeting Word Bank and European Union confirmed they will financially support the establishment of the arbitration center.
Commenting on the development Djibouti’s Chamber of Commerce and Industries’ President, Youssouf Moussa Dawaleh, said it is very interesting to see IGAD go beyond resolving political differences among member states and decided to smooth the business environment.
The assembly has also called upon its heads of member states to recognize the business forum as an important private arm of the regional block which is a catalyst to the integration of policies and economies of the countries.
In the quest of achieving this, the general assembly established a committee of representatives that came from each nation’s chambers. The committee is tasked with making the business forum to have recognition before 2016.
Pan African Chamber of Commerce appointed as an observer of the committee, secretary generals from the chambers of Ethiopia, Djibouti, Sudan, South Sudan, Somalia, Kenya, Uganda and secretary general of IGAD itself have been selected to be members.
The resolution passed by the general assembly states the committee is expected to meet in a month time for a working session. After this it will meet every three months.
It was back in 2010 that the business forum was established with a role of facilitating regional integration and creation of a free trade area. The forum is an apex body of the national chambers of commerce and industries in the IGAD member states. It works to bring the voice of the private sector to the regional integration
agenda.
Source: The Reporter
