The Marching of New Era for Commercial Arbitration in Ethiopia: Making Ethiopia an Arbitration-friendly Seat?

Abstract

Abstract
Arbitration has gained prominence as a preferred forum for commercial dispute
resolution, prompting nation states to compete for the coveted title of an arbitrationfriendly seat. Ensuring the right legal environment is a necessary, though not
sufficient, condition in this journey. Unfortunately, Ethiopia has left behind in
promoting arbitration, despite the advent of long-lasting arbitration laws. Legal and
institutional pitfalls were among the factors frequently signposted as a reason for
the underdeveloped arbitral tradition. In a bid to catch up, Ethiopia recently
overhauled its hitherto existing arbitration laws with the ordinance of Arbitration
and Conciliation Working Procedure Proclamation No. 1237/2021. This paper aims
to assess the role of Ethiopia’s new law in making the country an arbitration-friendly
seat through qualitatively examining its progressions and retrogressions in light of
both fundamental and contemporary notions of arbitration. The paper finds that
Ethiopia has taken a step towards arbitration friendliness with the new ordinance,
but there remain pressing concerns yet to be advanced.