The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | PATRICIA AKANKWATSA | Funds locked up in Uganda’s commercial courts as a result of financial disputes have risen to Shs 8 trillion negatively impacting investments, according to the Justice and Constitutional Affairs Minister, Norbert Mao.
In 2021, the funds locked up in unresolved disputes before Commercial Court Division stood at Shs7 trillion.
Mao, who spoke during a two-day high-level National Summit on Alternative Dispute Resolution in Kampala on June.26, said there is a need to embrace Alternative Dispute Resolution (ADR) to unlock these huge sums of money so that it can be utilized to stir growth and development of the economy.
Uganda’s court rolled out ADR in 2015 to enable the population to resolve their disputes without a trial. Some of the ADRs include mediation, arbitration, and neutral evaluation.
Sarah Arapta, the chairperson at the Uganda Bankers’ Association said ADR ‘breathes new life into the financial sector, providing a beacon of hope for investors seeking resolution without the protracted delays and complexities of traditional litigation.’
She said ADR has numerous benefits because it does not only supplement the existing court system as a fast, cost-efficient and less acrimonious alternative but also assists in providing the much-needed assurance as the best investment destination if commercial disputes are resolved promptly to free capital for more deployment in the economy.
Judy Rugasira, the managing director at Knight Frank – a property management firm, said the real estate sector contributes 12% to the country’s GDP and as such needs quick dispute resolution to facilitate its sustainable growth.
“Court is timely and costly. Investors need to know if there is a faster way to resolve disputes, especially in property valuation in the banking sector.”
Wilbroad Owor, the Executive Director at the Uganda Bankers’ Association said whereas they have done something, a lot more has to be done.
“We want to do business, attract investors and this is possible with a good ADR environment. We should be in alignment with international standards because investors are comfortable in areas that are internationally benchmarked,” he said.
