When a commercial relationship breaks down, choosing the right forum can save months of time and significant cost. This article compares the main options available in Tanzania.

The court structure

Tanzania's court system runs from Primary Courts and District Courts, through Resident Magistrates' Courts, to the High Court and, at the top, the Court of Appeal of Tanzania. The High Court has specialised divisions, including the Commercial Division, which handles complex business disputes above statutory thresholds.

Arbitration

Parties may agree to arbitrate under the Arbitration Act, with the seat, rules, number of arbitrators and governing law set out in the contract. Arbitration offers confidentiality, expert decision-makers and flexible procedure, and awards are generally enforceable through the courts. Tanzania is also a party to the New York Convention on foreign awards.

Mediation and negotiated settlement

Mediation is built into the civil procedure rules and is often required before a trial proceeds. A well-prepared mediation frequently resolves disputes faster and preserves the commercial relationship.

Time limits matter

The Law of Limitation Act sets deadlines within which claims must be filed, and these differ by type of claim, for example contract and land disputes. A claim filed late can be dismissed without being heard on its merits.

Drafting for the future

The best dispute strategy starts in the contract: clear payment terms, notice provisions, a governing law and dispute-resolution clause, and sensible limits on liability. We review and draft agreements with enforcement in mind.

This article is general information about Tanzanian law and is not legal advice. Laws and regulations change; speak to an advocate before acting on any matter.