THE UNITED REPUBLIC OF TANZANIA PROPOSES ARBITRATION REFORMS TO PLACATE FOREIGN INVESTORS. WILL IT WORK?

In 2017, the Tanzanian government introduced a raft of legislative reforms to the natural resources sector. Through the reforms the new government looked to ensure that investor disputes were resolved locally and that the Tanzanian government would not be subjected to international arbitrations. The new government showed a particular hostility towards international arbitration (especially in the mining and oil and gas sectors) arguing that it was inherently biased against developing countries, with no neutral ground in international arbitration. There followed a swathe of international arbitrations commenced against the Tanzanian government over parts of the legal reforms that cancelled the retention licences of foreign investors and transferred rights to the Tanzanian government. Read more