Enforcement of foreign arbitral awards in Uganda: a legal analysis of the practical hurdles

Abstract

The enforcement of foreign arbitral awards is a cornerstone of international commercial arbitration, ensuring the finality and efficacy of cross-border dispute resolution. Uganda as a signatory to the 1958 New York Convention, has established a legal framework through the Arbitration and Conciliation Act, Cap. 5 aimed at facilitating the recognition and enforcement of Foreign arbitral awards. However, this study identifies a critical gap between Uganda’s theoretical compliance with international standards and the practical realities of enforcement, which undermines its role as a reliable hub for international trade and investment. Through a qualitative analysis of legislation, case law, and secondary data, this study examines the legal and procedural framework governing foreign arbitral awards in Uganda. It reveals significant practical hurdles, including procedural delays, asset concealment by debtors, gaps in the Insolvency Act, Cap. 108 that neglects arbitral awards as triggers for insolvency, and systemic issues such as judicial corruption. These challenges erode the efficiency of arbitration, contradicting the New York Convention’s objectives and deterring investor confidence. Comparative insights from jurisdictions like India highlight the importance of legislative reforms, particularly in aligning Uganda’s Insolvency Act with arbitration needs to recognize awards as enforceable debts. Recommendations include procedural streamlining to expedite enforcement, judicial capacity building to combat corruption, and adopting best practices to enhance transparency. By addressing these gaps, the study suggests that Uganda can transform arbitral awards from mere “paper victories” into actionable tools for redress, bolstering its dispute resolution ecosystem and fulfilling its international obligations.