The Chief Justice has emphasized the importance of Alternative Dispute Resolution (ADR) in addressing complex banking, infrastructure, and commercial disputes, noting that traditional litigation often slows business operations and delays critical development projects.
Speaking during discussions at #GumzoLaADR2026, Flavian Zeija highlighted how ADR can offer faster and more practical solutions for disputes that involve technical, financial, and sector-specific complexities.
Drawing from his experience in both the banking sector and the judiciary, Chief Justice Zeija explained that while courts and judges provide the legal authority needed to resolve disputes, litigation processes can sometimes delay projects, frustrate businesses, and affect public service delivery.
He noted that ADR mechanisms such as mediation and arbitration allow parties to address complex issues more efficiently without halting project timelines or disrupting revenue flows.
According to the Chief Justice, effective mediation requires more than legal knowledge. Mediators must possess technical expertise, understand the industries involved, and maintain strict impartiality in order to facilitate fair outcomes.
He stressed that integrating ADR into commercial and government processes can help maintain trust among stakeholders while ensuring disputes are resolved in a practical and timely manner.
“ADR allows disputes to be addressed without unnecessarily holding up projects that are critical to economic growth and service delivery,” he noted.
The discussions also highlighted how risk plays a significant role in determining the cost of credit in the banking sector.
Andrew Mauso, Chairperson of the ADR Workstream at the Uganda Bankers Association ADR Committee, explained that interest rates alone do not determine the cost of borrowing.
He said lenders must factor in the risks associated with lending, including the likelihood of repayment and the costs involved in recovering funds when borrowers default.
According to Mauso, entrenched systems and institutional culture often influence risk levels within the financial sector. When risk is high, banks increase the cost of credit to compensate for potential losses and the operational effort required to recover loans.
“The business of lending is inherently risk-limited. The higher the risk, the higher the cost of credit,” he explained.
He added that reducing systemic risk across the financial ecosystem can make borrowing cheaper and more sustainable for businesses and individuals.
Mauso pointed to solutions such as strengthening contractual frameworks, improving repayment processes, and encouraging shared risk mechanisms as key steps toward lowering the cost of credit.
Stakeholders at the forum agreed that strengthening ADR frameworks within the financial and commercial sectors could help address disputes quickly, improve confidence in financial systems, and support a more stable lending environment.
The discussions formed part of the ongoing #GumzoLaADR2026 engagements, which continue to bring together legal professionals, regulators, financial institutions, and policymakers to promote efficient dispute resolution mechanisms that support economic growth and access to justice.
