The International Centre for Arbitration & Mediation in Kampala (ICAMEK) and the Private Sector Foundation Uganda (PSFU) have announced a groundbreaking partnership that aims to transform the landscape of business dispute resolution in Uganda.
This collaboration signifies a strong commitment from both organizations to champion the use of Alternative Dispute Resolution (ADR) as a more efficient and cost-effective mechanism for settling commercial disputes, ultimately benefiting Uganda’s private sector and economy.
In a statement made during the announcement ceremony, PSFU Executive Director Stephen Asiimwe emphasized the critical importance of ADR in Uganda’s business environment.
“Uganda’s private sector faces numerous challenges in contract enforcement and dispute resolution, with litigation taking over four years on average and costing up to 31% of the claim value. This is unsustainable for businesses that depend on timely resolutions to maintain cash flow and avoid financial distress. ADR offers a solution that is more accessible, culturally appropriate, and far less burdensome than traditional court litigation,” he noted.
The collaboration between ICAMEK and PSFU aims to address these challenges by promoting ADR as a core business practice. Studies have shown that improving access to dispute resolution by just 1% can increase annual GDP growth by 0.17%.
This potential economic impact aligns with the goals of both organizations, which see ADR not only as a tool for justice but as a catalyst for economic growth and business resilience.
ICAMEK Chairman John Fisher Kanyemibwa highlighted the progress made since ICAMEK’s inception, stating, “Since our establishment in 2019, ICAMEK has made tremendous strides in building the capacity of Uganda’s ADR professionals and systems. With over 96 arbitration cases registered and 71 awards issued, we have demonstrated that ADR is a credible and effective option for resolving commercial disputes. This partnership with PSFU allows us to scale up our efforts, broaden ADR awareness, and make it an integral part of Uganda’s private sector growth.”
As part of the partnership, PSFU and ICAMEK will work together to enhance awareness and understanding of ADR among businesses, build capacity through specialized training programs, and advocate for policies that encourage the use of ADR in Uganda’s legal and commercial frameworks.
By doing so, the two organizations aim to create a more stable, trustworthy, and predictable business environment.