As the justice sector evolves, so do the methods people use to resolve disputes. Increasingly, people and businesses are turning to Alternative Dispute Resolution (ADR) mechanisms of arbitration and mediation to solve conflicts faster, more privately, and often more cost-effectively than traditional litigation. Understanding these differences between these two ADR methods – arbitration and mediation – can help parties choose the best route for resolving their disputes without going to court. ALSO READ: Rwanda develops training module to enhance Alternative Dispute Resolution Victor Mugabe, the Director General of the Kigali International Arbitration Centre (KIAC), helped shed light on what distinguishes the two mechanisms. “In arbitration, the arbitrator considers the legal rights and wrongs of a dispute and makes a decision that is binding on both parties, whether they agree with it or not. It’s very much like a court judgment, but it’s private, faster, and often more flexible,” Mugabe explained. ALSO READ: Africa is not aspiring to join arbitration; it’s already a key player – experts This process typically results in a win-lose outcome, and parties usually agree in advance, often through a clause in their contract, that arbitration will be used should disputes arise. On the other hand, mediation is a collaborative, non-binding process where a mediator facilitates dialogue between parties to help them reach a mutual agreement. “The mediator doesn’t decide the case,” Mugabe added. “They help parties understand each other’s perspectives and guide them toward a solution they both can accept.” ALSO READ: Inside Rwanda’s rise as Sub-Saharan Africa’s leader in Alternative Dispute Resolution When should one consider arbitration? According to Mugabe, arbitration is ideal when parties need a legally binding decision but want to avoid lengthy court processes. “It’s particularly useful when the dispute is complex and requires a neutral expert, be it in law, finance, mining, or other sectors,” he said. Arbitration is also suitable for cases where confidentiality is a priority, as the proceedings are not public. Arbitration involves costs, including arbitrator and administrative fees as outlined in KIAC’s Arbitration Rules. ALSO READ: When Rwanda saved over Rwf7bn through alternative dispute resolution Mugabe stressed the importance of carefully drafting contracts that include arbitration clauses to ensure smooth proceedings if a dispute arises. Mediation: A win-win approach Mediation, meanwhile, is gaining popularity, especially in civil, labour, and administrative matters. Harrison Mutabazi, the spokesperson for the judiciary, emphasized that mediation is not about winning or losing; it is about reaching a compromise. “In mediation, there’s no winner or loser. Each party gives up something and meets in the middle. It’s a win-win,” he explained. Mediation in Rwanda is available both in court, as court-annexed mediation, and out of court, where private mediators or community-based structures like abunzi (mediators) can help parties resolve their differences. ALSO READ: Why does mediation in resolving business disputes matter? Mutabazi noted that mediation facilitated by court staff is generally free, while private mediators may charge a fee. Who is eligible for mediation and arbitration? According to Mugabe and Mutabazi, anyone involved in a civil, commercial, labour, or administrative dispute is eligible for either arbitration or mediation. Arbitration, however, is typically more suited to commercial disputes and requires a prior agreement between parties to use it. Mediation can be initiated at any time, even before a case is filed in court. “In mediation, you don’t need to wait until you’re in court,” Mutabazi said. “You can reach out to mediators or an ADR centre even before filing a case.” He added that pre-court mediation, also called alternative justice systems, is being promoted to reduce court backlog and offer people faster access to justice. Remedies and appeals One common concern is what happens if a party disagrees with the outcome. For arbitration, a party can apply to commercial courts to set aside the arbitral award, though this is not a traditional appeal. For mediation, since both parties consent to the outcome, challenging it in court is rare and only possible in exceptional circumstances such as coercion or mental incapacity. Both experts emphasized that ADR is now a pillar of Rwanda’s justice system. “ADR mechanisms are fast, fair, and legal. Whether through arbitration, mediation, or conciliation, we encourage the public, especially potential litigants, to consider these options before heading to court,” Mutabazi concluded. As Rwanda’s judiciary continues to embrace innovation and efficiency, ADR stands out as a powerful tool for justice, delivered not just in courtrooms but around tables, in boardrooms, and across communities.
