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Speeches
Congratulatory Message by the Deputy Minister of Justice and Constitutional Development, the Hon JH Jeffery, MP, at the Official Opening of the Johannesburg International Arbitration and Mediation Centre, held at Grindrod Tower, Protea Place, Sandton, 17 May 2018
Master of Ceremonies, Adv Badela
AFSA national chairperson, Adv Kuper (SC)
Members of the AFSA management committee
Distinguished guests
Ladies and gentlemen, friends
Good afternoon and thank you to Adv Lindi Nkosi-Thomas and AFSA for the kind invitation to be part of this celebratory event.
Earlier this week I happened to be looking for something on my computer and I came across one of the first addresses that I delivered at the establishment of the China-Africa International Arbitration Centre.
That was in 2015.
And I reflected on just how far AFSA and CAJAC have come over a few short years and how much progress we’ve made since then.
At that stage, in August 2015, we had just made some amendments to the International Arbitration Bill, as it then was, and we were getting ready to introduce it in Parliament to start the process of passing it as an act.
As you know, our International Arbitration Act has since came into operation - on the 20th of December last year. It incorporates the UNCITRAL Model Law into South African law and ensures that South Africa, like its Commonwealth, African Union and SADC counterparts has a reformed and modernised law on international arbitration.
It is envisaged that the reforms contained in the Act will position the arbitration regime in South Africa at the forefront of international arbitration best practices.
This will effectively promote South Africa as a business destination and boost her image and reputation.
It was with some interest I have been looking at the very latest international arbitration survey that was released recently.
The 2018 International Arbitration Survey: The Evolution of International Arbitration was conducted by Queen Mary University of London and White & Case. This is the eighth major empirical International Arbitration survey conducted by the School of International Arbitration at Queen Mary University of London.
The survey considers the evolution of international arbitration as a system and aims to research the sentiment of the international arbitration community as a whole.
According to the survey London was found to be the most preferred arbitration seat globally, followed by Paris. Singapore came in third, Hong Kong ranked fourth and Geneva fifth.
It is said that reputation and legal infrastructure are what make these centres popular - with respected arbitration laws and local legal systems characterized by “neutrality and impartiality.”
According to more than 1,100 respondents, international arbitration is the most preferred method for resolving cross-border disputes.
Some 97% of respondents indicate that international arbitration is their preferred method of dispute resolution, either on a stand-alone basis (48%) or in conjunction with ADR (49%).
And 99% said they would recommend international arbitration to resolve cross-border disputes.
Less than 1% of respondents preferred cross-border litigation.
Enforceability of awards continues to be perceived as arbitration’s most valuable characteristic, followed by “avoiding specific legal systems/national courts”, “flexibility” and “ability of parties to select arbitrators”.
Cost continues to be seen as arbitration’s worst feature, followed by “lack of effective sanctions during the arbitral process”, “lack of power in relation to third parties” and “lack of speed”.
The survey respondents — in-house counsel, private practitioners, full-time arbitrators, experts and other stakeholders — believe that international arbitration is likely to increase in the energy, technology, and banking and finance sectors.
According to the survey, “this latest finding can be read as a clear indication that financial institutions and their counsel are contemplating arbitration with much greater interest than ever before.”
Moving further afield, I see that the UAE is also putting plans in place to become a global arbitration hub, with its new Federal Arbitration Law that will go a long way in making the UAE an attractive hub for arbitration in the Middle East and North Africa region. Helsinki International Arbitration Day 2018 will also be taking place next week, with distinguished international arbitration practitioners from 20 countries.
What all of this shows is that arbitration is increasing in popularity globally.
South Africa has the potential to become a regional and global leader in this area and it is in this regard that this new centre is well-placed to becoming an arbitration and mediation force to be reckoned with.
I want to congratulate AFSA and we wish the new centre all success for the future.