International Commercial Arbitration in Ethiopia and the Implication of the Ratification of the New York Convention

Arbitration is a preferred dispute settlement mechanism in international commercial disputes. Ethiopia does not have an up to date and comprehensive law addressing international commercial arbitration. Many states are engaged in harmonizing their laws with international best practices so as to attract foreign businesses. Likewise Ethiopia needs to harmonize its arbitration and other relevant laws to attract foreign businesses. Ethiopia ratified the New York Convention on the recognition and enforcement of foreign arbitral awards with a view to address concerns of foreign businesses. This action, together with the introduction of other investment friendly laws and policies will help Ethiopia to attract foreign businesses and boost its economy. This article tries to highlight the salient features of Ethiopia’s commercial arbitration in light of other jurisdictions and international practices. It also tries to highlight the areas where the introduction of the New York convention will impact. It is argued that to supplement the positive influence of the introduction of the New York Convention on the legal regime, serious steps should be taken by the government in reforming the law governing arbitration in Ethiopia so as to attract foreign investment and place Ethiopia at the right position to serve as an arbitration hub for the region and the continent at large.