Business disputes: URSB needs to accelerate arbitration, says Mao
(Left-right: Malawi Minister of Justice Titus Edward Songiso Mvalo, URSB chairman Amb Francis Butagira, and URSB registrar general Mercy K. Kainobwisho during a meeting in Kampala, at which a delegation from Malawi was in the country to benchmark best business practices. Photo / Courtesy
What you need to know:
- International Centre for Arbitration and Mediation in Kampala estimates that more than Shs5 trillion is tied up in business disputes at the Commercial Court
In the 12 months to June 2024, Uganda Registration Services Bureau (URSB) received 63 petitions related to company and trademark disputes.
Of these, 47 were company disputes, 16 trademark oppositions, and three applications for cancellations.
Details contained in the URSB annual report show that of the 47 company disputes, 45 were resolved, while 16 trademark oppositions and three applications for trademark cancellations were managed.
“The Bureau handled 47 company disputes, resolving 45, and managed 16 trademark oppositions and three trademark cancellation applications,” the report reads in part.
The report, however, does not indicate how many disputes failed at mediation.
However, irrespective of the number, the unresolved disputes that proceeded to court joined a lengthy queue of litigations, which, according to the International Centre for Arbitration and Mediation in Kampala, have over the years accumulated more than Shs5 trillion in tied-up business capital in the Commercial Division of the High Court.
On average, the Commercial Court receives more than 2,000 cases annually. Only half or less go up to disposal per annum, resulting into a substantial growth in case backlogs.
It is estimated that on average commercial cases take about four to five years to be disposed of, which, therefore, according to Justice Minister Norbert Mao, calls for adoption of mediation and alternative dispute resolution to accelerate business processes.
“We encourage URSB and legal practitioners to prioritise mediation as a viable solution for resolving disputes. This approach not only facilitates swifter resolution but also promotes a healthier business environment,” he said at a meeting with a delegation from Malawi at the URSB offices in Kampala.
Through mediation, he said, businesses can avoid prolonged litigation and encourage constructive dialogue, leading to mutually beneficial outcomes.
Mediation can also be a way through which Uganda can improve its investment climate by reducing bureaucratic bottlenecks.
The length of time taken to resolve a business dispute has previously been used as a measure of ease of doing business in Uganda by World Bank and East African Business Council.
The International Centre for Arbitration and Mediation in Kampala has also previously noted that there is need to promote arbitration and mediation as non-litigation measures to reduce case backlog in the commercial sector and support the private sector to enable businesses to resolve disputes quicker.
Benchmarking best business practices
The Malawian delegation, which was hosted by URSB chairman Amb Francis Butagira and Registrar General Mercy K. Kainobwisho, was led by Justice Minister Titus Edward Songiso Mvalo.
They were in the country to benchmark Uganda’s best business practices, especially in the area of alternative dispute resolution, automation, and technology. Mr Mvalo said they were in Uganda to “learn and copy from what we have seen here back to Malawi”.
URSB has in the last few years automated several business processes, which during the period to June 2024 rose from 65 percent to 85 percent.
The automation has also been key in reducing turnaround time regarding business registration and document filing.
