ZAMBIA Law and Practice Contributed by: Luckson Mwamba, Katongo Bwalya and Mumba Mwila, Mwamba & Milan Advocates
ity of concession and joint venture agreements, and the involvement of foreign investors, arbitration has become the preferred method of dispute resolution in the sector. Recent disputes have involved parties such as Konkola Copper Mines and Kansanshi Min - ing Limited. The construction sector has arguably been the pio - neer and leading driver of international arbitration in Zambia, particularly in disputes arising under FIDIC contracts (standard form contracts developed by the International Federation of Consulting Engineers and widely used in large-scale infrastructure projects). FID - IC contracts encourage the use of alternative dispute resolution and have been instrumental in embedding arbitration within the construction industry in Zam - bia. Their adoption has largely propelled the growth of arbitration in this sector. Furthermore, because most heavy construction contracts in Zambia are procured by the state, the Public Procurement Act mandates that disputes under such contracts be resolved by arbitration. This statutory framework, coupled with the international character of many contractors and financiers, has reinforced arbitration as the default mechanism for resolving high-value construction dis - putes in Zambia. These sectors are more prone to international arbitra - tion due to their cross-border investment structures, the high value of contracts, frequent state involve - ment, and investor preference for neutral dispute resolution outside the Zambian courts. 1.3 Arbitration Institutions Until recently, the Chartered Institute of Arbitrators (CIArb) has been the primary arbitration institution in Zambia. CIArb has served as the default forum owing to its established rules and procedures, as well as the availability of accredited practitioners within Zambia, which gave parties confidence in the neutrality and enforceability of awards. In April 2024, LIAC was established in Lusaka to pro - vide a dedicated forum for the administration of both international commercial and domestic arbitrations, as well as other alternative dispute resolution pro - cesses. Its establishment reflects the growing demand from the business community for a reputable local
institution capable of ensuring efficient and speedy resolution of commercial disputes. Although still new, LIAC is expected to play an increasingly significant role as Zambia positions itself as a regional hub for arbitration. Importantly, Zambian law imposes no restrictions on parties choosing international arbitration institutions. As such, parties to an international arbitration remain free to designate leading global arbitral bodies – such as the ICC International Court of Arbitration, the Lon - don Court of International Arbitration or others – as their administering institution. In practice, this often occurs where one or more par - ties to the agreement is a large foreign entity. In such cases, it is also common for the parties to select a neutral foreign seat of arbitration to ensure neutrality and enforceability. At such a hearing, the parties will ordinarily adopt a foreign administering institution. A notable example of such an arrangement is the high- profile shareholders’ dispute between ZCCM-IH and Vedanta Resources concerning the Konkola Copper Mines, in which arbitration was seated outside Zam - bia. 1.4 National Courts In Zambia, there is currently no specialist court des - ignated for arbitration-related disputes. Jurisdiction in such matters is vested in the High Court of Zambia as the court of first instance, with appeals lying to the Court of Appeal and ultimately to the Supreme Court. On rare occasions where a dispute raises constitu - tional issues, it may be determined before the Con- stitutional Court. Section 10 of Arbitration Act No. 19 of 2000 (the “Arbi - tration Act”) provides that where legal proceedings are brought before a court in a matter that is the subject of an arbitration agreement, the court shall stay the pro - ceedings and refer the parties to arbitration – except where the agreement is found to be null and void, inoperative, or incapable of being performed. For purposes of the Act, Section 2 defines “court” as the High Court or any other court that may be desig - nated by statutory instrument by the Chief Justice of Zambia. While no such designation has been made
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