Tanzania is in the final stages of setting up an International Arbitration Centre that aims to hasten settlement of commercial disputes and promote foreign investments.

The Tanzania Private Sector Foundation (TPSF) executive secretary, Godfrey Simbeye, said all technicalities have been completed and they were awaiting to launch the centre in July this year to start its operations.

"Our country has contracted major foreign investments and usually such investments encounter disputes which if taken to court take up to 10 years to reach a verdict thereby discouraging investors from investing in our country and the region as a whole," he said.

In line with this, Dar es Salaam will be hosting the third East African International Arbitration Conference (EAIAC) early April this year, that is expected to highlight the importance of international arbitration as a tool for promoting foreign investment in the region with a focus on Tanzania.

Mr Simbeye said the country is increasingly gaining recognition as a leading natural resource player in the East African market especially with the discovery of gas and minerals which has brought about major disputes.

In May 2013, protests broke out in Mtwara region over extraction of gas and the government’s decision to construct a pipeline to transport the commodity to Dar es Salaam for refining and eventual sale causing damages worth at least $929,000 in vandalised property.

Mr Simbeye noted that with the arbitration centre in operation, many investors will gain confidence in the region especially as it will aim at reaching a consensus and not giving out verdicts against parties in dispute.

About 10 countries have confirmed to participate in the conference including, Kenya, Ethiopia, Burundi, Rwanda, Uganda, Mauritius, United Kingdom, Singapore and France.

EAIAC was launched in 2013 by a committee of legal and business professionals to promote arbitration centres and support development of the region’s legal capacity.

The conference is being hosted by Tanzania Private Sector Foundation together with the Tanganyika Law Society.