Interviste

Victor Mugabe is the Secretary General of the Kigali International Arbitration Centre (KIAC), Rwanda’s leading institution for commercial dispute resolution. In this capacity, he oversees the Centre’s administration, strategic development, and international outreach, promoting Rwanda as a neutral and reliable hub for both domestic and cross-border disputes. A lawyer with extensive experience in legal and institutional development and international arbitration, Mr. Mugabe has been instrumental in positioning KIAC among Africa’s top arbitration institutions and in advancing Rwanda’s reputation as a model for transparent and investor-friendly dispute resolution systems.  

Could you provide an overview of the development of commercial and investor-State arbitration in Rwanda in recent decades? 

Rwanda’s experience mirrors that of many African countries. With regard to investment arbitration, Rwanda acceded to the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention) in 1979. However, the effective implementation of the Convention was not initially clear. Before 1994, the country faced major political and social instability, culminating in the genocide, and, as a result, there are no reliable records indicating how the Convention was implemented during that period. 

A more concrete development phase began in the 2000s. Starting around 2005, as Rwanda sought to deal with the aftermath of the genocide, the government adopted a series of short-term and five-year development plans aimed at attracting international investment. Recognizing the need to establish a reliable commercial justice system, commercial courts and specialized judges were introduced in 2007. Following their creation, the business community emphasized that a functioning arbitration framework was essential to further promote investment. In response, an arbitration system was established in 2008. In particular, Rwanda enacted the Law No. 005/2008 of 14 February 2008 on Arbitration and Conciliation in Commercial Matters, creating the domestic legal framework. 

In the same year, Rwanda acceded to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, thereby committing to the enforcement of international arbitral decisions. To support this framework and provide an institutional mechanism for the resolution of commercial disputes, the Kigali International Arbitration Centre (KIAC) was established by Law No. 51/2010 of 10 January 2010 and officially launched in 2012. Its mandate focuses primarily on commercial arbitration, while investment arbitration continues to be addressed under the framework of the New York Convention and the ICSID Convention. 

Following the establishment of KIAC, Rwanda undertook extensive reforms to improve its business environment and strengthen investor protection. New business-related laws, including those on contracts and insolvency, were enacted. These reforms significantly enhanced investor confidence, and by 2015 Rwanda had become recognized as one of Africa’s most attractive destinations for investment. The arbitration law was subsequently reviewed in 2021 to align with best international practices. 

Today, Rwanda is regarded as one of the most favorable jurisdictions for doing business in Africa. The KIAC, despite being one of the youngest institutions on the continent, has gained remarkable recognition. It draws arbitrators from around the world – approximately 90 percent of its 140 registered arbitrators are international – and its rules guarantee freedom of legal representation. As a result, KIAC is now ranked among the top five arbitration centers in Africa. 

In your opinion, how important is it for foreign investors operating in Africa to have access to international arbitration institutions such as KIAC? Furthermore, do you believe that, in the long term, the expansion of Alternative Dispute Resolution (ADR) across the African continent could provide benefits by fostering investments, simplifying bureaucracy, and offsetting investor risks?    

Considering Rwanda’s current achievements, we believe that establishing efficient arbitration systems across the African continent is essential. The adoption of the African Continental Free Trade Area (AfCFTA) Agreement, which promotes cross-border trade both within Africa and with the rest of the world, already provides a strong foundation for this development and could prove highly beneficial for the continent. 

International disputes are increasingly being referred to arbitration centers such as the KIAC, which has become an attractive seat due to its neutrality, efficiency, and transparency. However, to ensure well-functioning arbitration systems throughout Africa, greater synergy among countries is required. It is crucial to guarantee that investors coming to Africa can rely on neutral forums where local courts have only a minimal supervisory role. This ensures that the arbitration environment remains impartial and free from the potential influence of biased domestic courts. 

There is a growing willingness among many African states to embrace arbitration and mediation, recognizing their importance for fostering investment and economic growth. Africa is a resource-rich continent with vast potential to attract foreign investment; by promoting credible and effective dispute resolution mechanisms, all member states can share in the continent’s economic flourishing, as Rwanda’s experience demonstrates.   

Does the example of Rwanda and the KIAG serve as an inspiration for other African countries for developing international arbitration centers and providing access to ADR mechanisms?  

KIAC operates within both political and legal frameworks that cannot be entirely separated. The government’s position toward the Centre has been highly positive, as its establishment has contributed significantly to Rwanda’s economic growth. When governments recognize that arbitration institutions contribute directly to economic development, they are more likely to establish and sustain effective arbitration systems, an approach from which many African countries could benefit. 

Following the tragedy of the 1994 genocide, Rwanda has rebuilt itself upon the rule of law and strong institutional foundations that have supported both economic recovery and national well-being. The country’s experience serves as a valuable model for other African nations, particularly those emerging from conflict, by demonstrating how transparent judicial systems and robust arbitration mechanisms can foster stability and growth. 

Several delegations from other states have already visited Rwanda to study its arbitration framework and draw inspiration from its success. The Centre, in turn, acknowledges the crucial support it has received from the government and the judiciary. The enactment and enforcement of good laws, coupled with judicial cooperation, have been vital to KIAC’s effectiveness. This synergy among the Centre, the business community, the government, and the judiciary has strengthened Rwanda’s arbitration system and continues to drive its progress. 

What are the main challenges encountered in resolving domestic arbitration cases as compared to those involving foreign investors? 

In cases involving foreign investors, we often deal with highly experienced legal teams. International business firms usually rely on skilled counsel from their home jurisdictions. Under Rwanda’s arbitration framework, parties may be represented by foreign lawyers without needing prior authorization from the local bar association, a distinctive feature in the African context. This flexibility allows international companies to work with their own specialized legal teams, who are generally well acquainted with arbitration law and practice. 

Domestic arbitration, however, presents a different situation. The concept of arbitration is still relatively new in much of Africa, and there remains a noticeable skills gap among local practitioners assisting parties before the Kigali International Arbitration Centre (KIAC). This challenge is particularly evident in domestic cases, where some lawyers still face difficulties with the drafting of arbitration clauses, understanding procedural rules, or even language barriers, especially among seniors.  

They are currently working to address the existing skill gap among local practitioners. At present, arbitration is not yet considered a mandatory subject in universities, although efforts are being made to introduce it into academic curricula. Consequently, this remains primarily a domestic challenge. 

In recent years, countries and institutions in Europe and beyond have shown increasing interest in the development of the African economy. Projects such as the EU Global Gateway and Italy’s proposed Piano Mattei are meaningful examples in this regard. In your opinion, what role will international arbitration centers – such as the KIAC – play in the practical implementation of these initiatives? Moreover, how important will it be for foreign investors to have access to ADR mechanisms that can promptly address controversies arising from cross-border investments? 

This point has been the focus of considerable attention in recent international conferences I have attended. Arbitration centers – such as KIAC – play a pivotal role in supporting and facilitating economic cooperation of this nature.  

KIAC has already initiated collaboration with the German business community, thereby demonstrating that arbitration institutions in Africa are fully capable of handling complex and high-value cases. This also underscores that Rwanda provides an attractive legal framework, a supportive judiciary, and a stable, accessible political environment free from security or infrastructural concerns. 

The Centre bears a key responsibility to disseminate accurate information through publications and to guarantee fundamental safeguards such as the immunity of arbitrators, the free choice of legal representation, and the participation of legal experts irrespective of nationality. These features significantly enhance investor confidence and constitute essential elements in attracting foreign investment. 

Recently, KIAC underwent an evaluation by a financial institution, which recommended the use of arbitration, recognizing it as the most suitable according to the assessment criteria. Such recognition is expected to further encourage the continued modernization of Rwanda’s legal framework. Reputation remains a decisive factor in this regard, strengthened by the parties’ freedom to select their legal representatives. Rwanda’s accessibility, facilitated by its open visa regime, further enhances its attractiveness to foreign investors. Moreover, KIAC operates with full institutional independence, while maintaining constructive cooperation with the local judiciary.  

Finally, the Centre holds an important responsibility in promoting awareness within the international community regarding the quality, reliability, and credibility of arbitration in Rwanda and across the African continent.