SOUTH AFRICA Trends and Developments Contributed by: Jonathan Ripley-Evans, Fiorella Noriega Del Valle, Kyle Melville and SooBin Park, Herbert Smith Freehills Kramer
Herbert Smith Freehills Kramer 4th Floor, Biermann Towers 15 Biermann Avenue Rosebank 2196 Gauteng South Africa Tel: +27 010 500 2600 Email: soobin.park@hsfkramer.com Web: www.hsfkramer.com/locations/south-africa
South Africa: Emerging as Africa’s Arbitration Powerhouse Introduction As global users continue to seek credible and secure arbitration seats across Africa, South Africa is steadily positioning itself as a leading contender. With a well- established domestic arbitration tradition, the country is now actively transitioning towards a globally com - petitive international arbitration framework. Legislative reform, institutional evolution and a maturing legal cul - ture are converging to reaffirm South Africa’s role as a thought leader in arbitration on the continent. Despite the growing number of arbitration institu - tions across Africa – nearly 100 at last count – the continent’s arbitration landscape remains fragment - ed. Many institutions struggle to build the credibility necessary to attract international referrals, often due to limited track records and inconsistent procedural standards. While innovation is frequently pursued as a differentiator, it can inadvertently contribute to unpre - dictability and a lack of cohesion in the market. In contrast, South Africa’s approach has been more measured. Institutions such as the Arbitration Founda - tion of Southern Africa (AFSA) have opted for evolu - tion over disruption. AFSA’s revised international arbi - tration rules, while progressive in the local context, are grounded in globally accepted practices. These rules offer international users a familiar and reliable proce - dural framework, enhancing South Africa’s appeal as a seat of arbitration.
The Global Context: Africa’s Arbitration Demand The demand for arbitration involving African parties continues to grow, but much of this activity remains administered by non-African institutions. Accord - ing to the London Court of International Arbitration’s 2024 Casework Report, the proportion of arbitrations involving African parties saw a significant increase, rising from 8% in 2023 to 17% in 2024. Similarly, the International Chamber of Commerce reported that 8% of its cases in 2024 originated from Africa, with South African parties among the most prominently repre - sented within that group. From Domestic Strength to International Readiness In addition to its evolving international arbitration framework, South Africa’s domestic arbitration sys - tem (now governed solely by the Arbitration Act of 1965) has long demonstrated notable strengths. One of its key advantages is the depth of legal expertise among practitioners, many of whom are seasoned litigators with extensive experience in complex com - mercial disputes. This has contributed to a high standard of legal rea - soning and procedural rigour in domestic arbitration proceedings. Moreover, the judiciary’s consistent sup - port for arbitration and its respect for party autonomy have fostered a stable and predictable environment for resolving disputes. Domestic arbitration also benefits from the country’s well-developed legal infrastructure, including access to skilled arbitrators, legal counsel and support ser -
756 CHAMBERS.COM
Powered by FlippingBook