On 31 October 2025, the Law Society of Lesotho achieved a historic milestone by signing a Memorandum of Understanding (MoU) with the Arbitration Foundation of Southern Africa (AFSA). The agreement signals a transformative era in Lesotho’s dispute resolution landscape, marking the beginning of efforts to establish an independent Arbitration Centre in Lesotho
This partnership promises to elevate Lesotho’s legal system by embedding internationally recognised arbitration standards into the local practice of law, thereby strengthening the country’s appeal to investors, businesses, and development partners who value certainty, efficiency, and professionalism in dispute resolution.
Understanding the Significance of the MoU
The Arbitration Foundation of Southern Africa (AFSA) is the region’s premier arbitral institution, with an established track record in commercial arbitration, mediation, and alternative dispute resolution (ADR) mechanisms. By formalising cooperation with AFSA, Lesotho’s Law Society positions itself and the country within a broader network of Southern African jurisdictions that recognise arbitration as a credible and preferred alternative to litigation.
This MoU is more than symbolic. It lays the groundwork for institutional arbitration capacity-building in Lesotho. It will involve the development of:
- An independent Arbitration Centre based in Lesotho;
- Standardised procedural rules harmonised with AFSA’s regional framework;
- Training and accreditation of Basotho legal practitioners and arbitrators; and
- Awareness and accessibility initiatives to promote ADR among businesses and government entities.
Advantages of Establishing an Arbitration Centre in Lesotho
(a) Efficiency and Cost-Effectiveness
Arbitration offers faster dispute resolution compared to the traditional court process. Lesotho’s courts, though effective, often face backlogs. A dedicated arbitration centre will help ease the judicial burden while offering parties quicker outcomes. Particularly vital in commercial and construction disputes.
(b) Attracting Investment and Enhancing Business Confidence
Foreign investors and multinational corporations often prefer to operate in jurisdictions where commercial disputes can be resolved privately, efficiently, and under predictable rules. An arbitration centre in Lesotho will:
- Reinforce investor confidence;
- Align Lesotho with global business norms; and
- Make the country more attractive for cross-border contracts, infrastructure projects, and public–private partnerships.
(c) Regional Integration and Legal Harmonisation
Through AFSA’s guidance, Lesotho will be integrated into the Southern African arbitration network, ensuring consistency with regional and international best practices. This fosters easier enforcement of arbitral awards across borders under conventions such as the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958).
(d) Capacity Building and Professional Development
Local lawyers, judges, and mediators will benefit from training and certification programmes facilitated by AFSA. This enhances the overall competence of Lesotho’s legal profession, equipping practitioners with modern ADR skills applicable beyond national borders.
(e) Confidentiality and Party Autonomy
Unlike court proceedings, arbitration offers privacy. Akey consideration in commercial matters. Parties can select arbitrators, define procedures, and tailor processes to suit their dispute’s complexity. This flexibility is a hallmark of arbitration and will greatly benefit Lesotho’s evolving corporate and commercial sector.
The Broader Economic and Judicial Impact
The establishment of an arbitration centre will also support Lesotho’s broader economic reform agenda, particularly the drive to improve the country’s Ease of Doing Business ranking. Efficient dispute resolution mechanisms are a critical component of investment attractiveness, and the MoU contributes directly to strengthening legal infrastructure and governance credibility.
Moreover, the presence of an Arbitration Centre may reduce cross-border dependence on South African arbitral institutions, retaining legal fees, expertise, and institutional development within Lesotho. This will stimulate growth in local professional services. Law firms, experts, mediators, and academics.
Future Outlook: Building a Culture of Alternative Dispute Resolution
This MoU is a step towards mainstreaming ADR in Lesotho’s justice ecosystem. Over time, the Law Society and AFSA partnership may lead to:
- The enactment of a modern Arbitration Act aligned with UNCITRAL Model Law principles;
- Greater use of mediation in commercial and labour disputes; and
- A regional training hub for ADR practitioners within the SADC community.
The success of this initiative will depend on sustained collaboration among stakeholders. The judiciary, legal profession, private sector, and academia. To ensure arbitration becomes a trusted and integral part of Lesotho’s legal culture.
Conclusion
The Law Society of Lesotho’s partnership with AFSA marks a visionary leap towards modern, efficient, and investor-friendly justice administration. By establishing a national Arbitration Centre, Lesotho moves closer to aligning its legal system with international best practice, while empowering its legal professionals to deliver justice that is timely, fair, and commercially responsive.
This development is not just a win for lawyers. It is a win for the rule of law, economic growth, and Lesotho’s reputation as a credible jurisdiction for doing business in Southern Africa.