Business community buoyant over arbitration centre

Members of the business community are optimistic that the launch of the Kigali International Arbitration Centre (KIAC) would improve business environment through saving time and costs.The centre was created to resolve disputes among business practitioners without the need to go to courts of law. Amicable ways of commercial dispute resolution are preferred to litigation in courts as they realise better results in terms of delivery time, output and preservation of business relationships.David Rusirare, the Executive Chairman of Chillington Rwanda, said his company has not been in any dispute but he is optimistic that the centre would have an impact on the private sector.“It depends on how the centre evolves, we have not been in any big dispute but nobody would wish to go through the courts,” he said.Chillington Rwanda is a local based company that manufactures vehicles spare parts and wheelbarrows.The Private Sector Federation, which set up the centre, considers it a good development for increased demand of commercial arbitration with the aim of strengthening the capacity of the country’s economic operators.KCB Rwanda Managing Director, Maurice Toroitich said the centre should benchmark on international best practices.“It is a welcoming move, however, the centre needs to benchmark to best practices, and it has to run very professional if it’s to positively impact the society,” he said.Information from PSF indicates that the Centre is in touch with internationally renowned arbitrators who will be handling disputes of international nature.According to Toroitich, the centre would not only benefit the private sector but also the courts by receiving exceptional disputes.Traditionally, all disputes were settled in courts, a process that is normally long hence a lot of delays and expenses.It normally takes 20 days to file and service a suit in Rwanda, while trial and judgment can last at least another 120 days while the enforcement of a judgment can then take 90 days.PSF has pledged to carry out an awareness campaign to raise the interest of the local business community to exploit the centre’s services to resolve disputes.The arbitration fees and the centre’s administrative fees are expected to be considerably lower than those of other centres in Africa and the world which would make it affordable to the country’s small and medium enterprises.

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Business community buoyant over arbitration centre