The Act will govern all international arbitrations (whether commercial or investment arbitrations) seated in South Africa, currently regulated by the provisions of the 51 year old Arbitration Act No 42 of 1965, which regulates both domestic and international arbitrations.
The most fundamental change to be brought about will be that the South African law will now distinguish between the law governing international arbitrations, through the incorporation of the UNCITRAL Model Law on International Commercial Arbitration, as amended (the Model Law) as part of the Act, and domestic arbitrations that will continue to be regulated by the Arbitration Act.
The International Arbitration Act will align the South African International Arbitration Law with international best practice and should go a long way to establish South Africa as a venue of choice for international arbitrations in Africa. The South African courts for years have played a critical role in promoting arbitrations in South Africa. The courts have not interfered with the sanctity of arbitration agreements and we believe will continue to refrain from doing so by providing the necessary platform and support to ensure international arbitrations are respected and thrive in South Africa. We believe that the Bill will go a long way towards promoting international arbitrations in South Africa.