Zuko Nonxuba Explains Why We Need International Commercial Arbitration

International commercial arbitration is a process whereby two parties to a commercial contract agree to submit any disputes that may arise under the agreement to arbitration. This process is usually quicker and cheaper than going to court, and it provides both parties with a certain degree of flexibility in choosing the arbitrator or arbitrators who will preside over their case.

Expert Zuko Nonxuba in Johannesburg, South Africa, says that although international commercial arbitration is not without its detractors, it remains an essential tool for resolving disputes between companies operating in different countries. Here are four reasons why international commercial arbitration is necessary.

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1. It Encourages Cross-Border Trade

When companies are considering entering a commercial contract with a company based in another country, one of the key considerations will be how any disputes arising under the agreement will be resolved. If the only option available is to go to court in the other country, many companies will be deterred from entering into the contract in the first place.

However, if international commercial arbitration is available as an alternative, this will reassure companies considering cross-border trade and should encourage more companies to engage in this activity.

2. It Reduces The Risk Of Political Interference

Suppose companies have to resolve their disputes through the national courts of the other party to the contract. In that case, there is always a risk that political interference may result in decisions that are not based on legal principles but rather on political factors.

This is particularly likely to be the case if one of the parties is based in a country with an unstable political environment. However, when disputes are submitted to international commercial arbitration, they are resolved by arbitrators independent of any government. They are more likely than courts to reach decisions based solely on legal principles.

3. It Can Save Time And Money

The international commercial arbitration process is usually quicker than going through the courts, partly because fewer procedural rules need to be followed and somewhat because arbitrators are typically given more discretion than courts in deciding how cases should be managed.

In addition, Zuko Nonxuba says international commercial arbitration can be less expensive than going to court, exceptionally if the parties choose to use an arbitral institution such as the International Court of Arbitration of the International Chamber of Commerce (ICC), which provides comprehensive administrative support throughout the arbitral process.

4. It Can Be More Flexible Than Going To Court

Another advantage of international commercial arbitration over litigation is that it gives parties more flexibility about aspects such as the applicable law, where hearings will take place, and who will preside over the case. In contrast, when disputes are submitted to national courts, there tend to be far fewer options available about these matters.

This increased flexibility can be particularly beneficial for companies that have operations in multiple countries and want dispute resolution proceedings that can accommodate their particular needs and circumstances.

When Should You Consider International Commercial Arbitration?

International commercial arbitration is essential for resolving disputes between companies operating in different countries and should be considered whenever cross-border trade is involved.

It can provide parties with a quicker, more cost-effective, and more flexible alternative to going through the national courts of the other party. It can help to encourage more companies to engage in cross-border trade.

It is also essential for companies to be aware of the potential risks associated with international commercial arbitration and to consider these carefully when making decisions about how their disputes should be resolved.

The above discussion makes it clear that international commercial arbitration provides several advantages over going through the national courts of the other party and should be considered whenever possible.

However, it is essential to note that international commercial arbitration is one of many options available. Companies should always consider all their options before deciding which route to take.

Zuko Nonxuba says it may also be helpful to seek legal advice to ensure that the best possible decision is made about resolving disputes. By doing so, companies can ensure that they can fully benefit from the advantages of international commercial arbitration while avoiding potential risks.

Hiring The Right Arbitrators

Finally, it is also essential to ensure that suitable arbitrators are appointed for international commercial arbitration proceedings. Arbitrators should be chosen based on their experience and expertise in the relevant field. They should have a good understanding of the national law of the countries involved and international commercial law.

This will ensure that decisions are made in an informed and impartial manner that benefits both parties.

Companies can increase the chances of a thriving international commercial arbitration process by ensuring that suitable arbitrators are appointed. Ultimately, this will help to ensure that any disputes between them are efficiently and fairly resolved.


There are many reasons why international commercial arbitration is essential. Perhaps most importantly, it encourages cross-border trade by providing comfort to companies considering entering into commercial contracts with entities based in other countries.

In addition, international commercial arbitration reduces the risk of political interference, can save time and money, and can be more flexible than going through national court systems. These factors all contribute to making international commercial arbitration an essential tool for resolving disputes between companies based in different countries.

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