In Lesotho, alternative dispute resolution (ADR) mechanisms such as arbitration and mediation play an increasingly important role in resolving commercial, construction, and contractual disputes efficiently and privately, outside the formal court system.

Arbitration in Lesotho

Arbitration is a legal process whereby disputing parties refer their matter to a neutral and independent third party, known as an arbitrator. The arbitrator considers the facts and evidence presented by each side and delivers a final and binding decision referred to as an arbitral award.

Arbitration is recognised in Lesotho under the Arbitration Act of 1980, and its use is particularly prevalent in commercial agreements, construction contracts, procurement matters, and cross-border transactions.

In order for a dispute to be validly referred to arbitration:

• There must be a genuine dispute between the parties; and

• An arbitration agreement must exist typically in the form of a clause in a contract which clearly states that any disputes will be resolved through arbitration.

Arbitration offers several advantages in the local context, including reduced pressure on Lesotho’s court system, confidentiality, and the possibility of appointing arbitrators with specialised industry expertise.

Mediation in Lesotho

Mediation is a consensual process where parties in conflict engage the assistance of an impartial third party the mediator to help them reach a mutually acceptable settlement. The mediator does not make a ruling but facilitates dialogue, identifies common ground, and helps the parties resolve the dispute amicably.

In Lesotho, mediation is increasingly used by both private parties and public institutions, particularly in labour disputes (e.g., before the Directorate of Dispute Prevention and Resolution – DDPR) and family matters. It is generally faster, more cost-effective, and more collaborative than litigation, making it an ideal method where relationships must be preserved.

Why ADR Matters in Lesotho

Given the resource constraints and backlog challenges in Lesotho’s courts, arbitration and mediation offer valuable alternatives to traditional litigation. Both mechanisms promote access to justice, reduce the costs and delays associated with formal court proceedings, and allow parties greater control over how their disputes are resolved.

Before initiating formal proceedings, parties are encouraged to consider including arbitration or mediation clauses in their contracts and to seek legal advice on the most appropriate ADR mechanism for their specific circumstances.