The Capital Markets Tribunal (CMT) has urged investors and other market participants to use the tribunal to resolve commercial disputes faster, saying prolonged cases can undermine investment, tie up capital and hurt economic activity.
CMT Registrar Dr Martin Kolikoli said efficient dispute resolution was essential as Tanzania's capital and commodities markets continued to expand and attract more participants.
He made the remarks during a visit to the Fair Competition Tribunal (FCT) in Dar es Salaam, where CMT officials sought to learn from the latter's experience in handling cases, including the use of digital systems in case management.
Dr Kolikoli said the visit was aimed at strengthening CMT's capacity by learning from an institution that has handled commercial and competition-related disputes for nearly two decades.
“The purpose of having tribunals with a status equivalent to that of the High Court is to simplify dispute resolution. If a matter goes to court, it can take a long time, but through the tribunal, we can ensure it is resolved within a shorter period,” he said.
CMT, which began performing its functions about three years ago, has already registered six disputes, according to Dr Kolikoli.
He said the tribunal was particularly interested in learning how FCT registers, schedules and manages cases to minimise delays and prevent a backlog.
Under CMT procedures, cases are expected to be handled within 90 days, he said, making an effective case-management system critical to ensuring investors and other stakeholders receive timely justice.
“This experience is important because it enables us to learn from an institution with greater experience and improve the services we provide to investors and stakeholders in the capital and commodities markets,” Dr Kolikoli said.
Dr Kolikoli said the impact of delayed dispute resolution could be particularly severe in commodity markets, where goods involved in disputes may remain in warehouses for extended periods.
He said prolonged storage could affect the quality and value of commodities, potentially exposing farmers, traders and other market participants to significant losses.
“If goods remain locked in warehouses because of a dispute and the case takes years in court, those goods may no longer be useful. Through the tribunal, however, an affected party can obtain justice within a shorter period,” he said.
He added that delays in financial disputes could also have wider economic consequences because money tied up in litigation could not be invested or used for productive activities.
CMT serves a broad range of stakeholders, including investors, banks, brokers, listed companies and participants in commodity markets. These include farmers, members of agricultural marketing cooperative societies (AMCOs), warehouse operators and commodity traders.
Dr Kolikoli said the growth of Tanzania's capital and commodities markets made it necessary to strengthen mechanisms that protect the rights of investors and other market participants.
He pointed to increasing participation in the stock market and growth in market capitalisation as indicators of an expanding market, saying dispute-resolution systems must keep pace with that growth.
“CMT will continue working with institutions with extensive experience, including FCT, to build the capacity of our staff, improve digital systems and ensure dispute-resolution services are provided efficiently, transparently and on time,” he said.
FCT Registrar Mbegu Kaskasi said the tribunal was established under the Fair Competition Act, 2003, to hear and determine disputes relating to business and competition and to protect consumer interests through an appeals mechanism.
He said one of its key functions was to hear appeals arising from decisions of the Fair Competition Commission (FCC), as well as appeals from regulatory authorities in sectors linked to business activities.
Mr Kaskasi said the engagement with CMT demonstrated the importance of institutions learning from one another despite differences in their age and experience.
“Since its establishment, FCT has handled a total of 525 cases, receiving an average of between 45 and 50 cases annually,” he said.
He said the caseload demonstrated the need to continuously strengthen the tribunal's capacity as business and investment activities increased.
Mr Kaskasi noted that while some disputes involved amounts of money that could easily be quantified, others had wider economic implications that were difficult to measure in monetary terms.
He cited mergers and acquisitions, where transactions can involve shares worth trillions of shillings, as an example of cases whose resolution can have significant implications for businesses and the wider economy.
He said FCT and CMT would continue collaborating to strengthen their capacity and improve the efficiency of dispute resolution.
“Resolving disputes within a reasonable period is important because prolonged cases in the court system can delay business operations and investment decisions,” he said.
The collaboration between the two tribunals comes as Tanzania seeks to strengthen investor confidence by improving the efficiency, predictability and accessibility of mechanisms for resolving commercial disputes.