TIC and CMA sign a new conflict resolution agreement to strengthen the investment climate

Dar es Salaam. The Tanzania Investment Center (TIC) and the Commission for Mediation and Arbitration (CMA) have signed a cooperation agreement that seeks to mitigate conflicts between investors and employees.

The agreement between the two parties aims to further improve and strengthen the country’s investment climate.

TIC and CMA reached an agreement on Thursday, May 2, 2024, after the two parties mainly agreed that the current investment boom must be supported by the introduction of robust workplace dispute resolution to increase efficiency.

CMA Director-General Usekelege Mpulla highlighted plans to streamline services, ensure accessibility to stakeholders including employees and investors, and efficiently facilitate the lodging of complaints.

“We are completing a dispute resolution system that will allow investors and employees to register their cases easily and efficiently without consuming much time and cost,” he said.

Reflecting on progress in conflict resolution over the past three years (2021-2023), Mpulla said the number of reported conflicts has decreased significantly.

He said that although 17,000 conflicts were reported in 2021/22, 11,000 occurred in 2022/23 and as of April 2024, 5,900 conflicts had been reported.

“The decrease is attributed to concerted efforts in conflict resolution strategies. CMA will support TIC in the rapid resolution of labor disputes for the benefit of employees as well as domestic and foreign investors,” he stated.

ICT chief executive Gilead Teri outlined two key areas of focus in the agreement, including improving understanding of arbitration and decision-making processes in employment disputes.

“We want all investors who come to the country to know the current laws, their rights and the corresponding obligations,” he said.

In this area, Teri said that TIC will ensure that all investors coming to the country provide and understand complete information on the laws, procedures and regulations governing CMA operations.

Teri noted that promoting dialogue between investors, CMA, TIC and employee representatives was of utmost importance.

“Before challenges to investment result in significant fines, there should be avenues for dialogue. This can be facilitated by the ICT framework in conjunction with the CMA without affecting the laws of both ICT and the CMA,” he explained.