GHANA: An Introduction to Dispute Resolution

Ghana’s Changing Dispute Resolution Landscape.

Dispute resolution in Ghana has evolved significantly since the turn of the 21^st century, shaped by liberalisation of the economic climate, legal reforms and shifting societal expectations prompted by further integration of Ghana’s economy into the global market.

Even though litigation has been and remains the predominate dispute resolution mechanism in Ghana, the country is increasingly confronted with a growing demand for dispute resolution mechanisms that are efficient, cost-effective and adaptable to business needs. Consequently, alternative dispute resolution (ADR) – comprising arbitration, mediation, and negotiation – is rapidly gaining ground, supported by legislation, institutional reforms and judicial encouragement.

This article will outline the factors and trends shaping the dispute resolution landscape in Ghana.

Economic Conditions Shaping the Dispute Resolution Landscape

Ghana’s economy suffers from high inflation, persistent currency depreciation and a huge public-debt. These macroeconomic pressures have intensified commercial disputes bordering on debt recovery, contractual breaches and insolvency.

For small and medium-sized enterprises (SMEs), litigation is increasingly seen as a costly and time-consuming option. Legal fees, coupled with prolonged case durations, discourage parties from seeking redress through traditional courts. This has fuelled a demand for faster and more cost-effective mechanisms, notably ADR.

Foreign investors, particularly in capital-intensive sectors such as mining, oil and gas, and infrastructure, often prefer international arbitration. Contracts involving foreign parties frequently include arbitration clauses governed by international rules (eg, those of UNCITRAL or the ICC) to circumvent perceived inefficiencies in the local court system.

Moreover, high inflation and exchange rate volatility have influenced the structuring of legal fees and damages, leading to disputes over currency denominations, payment timelines and pricing formulae.

Dispute Resolution Trends and Recent Developments

The rise of ADR

The growing recognition of ADR in Ghana is rooted in the Alternative Dispute Resolution Act, 2010 (Act 798), which provides a comprehensive legal framework for arbitration and mediation. The Act promotes party autonomy, confidentiality, and enforceability of awards.

Judges are increasingly referring parties to ADR, particularly mediation, prior to full trials by virtue of recently introduced judicial reforms, which, amongst other things, enjoin such referrals to be made at the pre-trial stage. Moreover, institutions such as the Ghana Arbitration Centre and the Ghana ADR Hub have expanded their services, and there is a push for greater public education on the benefits of ADR.

Technology-based justice delivery system

The COVID-19 pandemic hastened the digitisation of Ghana’s court system. Under the Government of Ghana’s e-Transform Programme, the E-Justice Project was established to provide for electronic case management, virtual court hearings, e-filing of court processes, and digital case tracking. The project aims to achieve a paperless system for the administration of justice, enhance transparency, and ensure expedited adjudication of cases.

Virtual hearings, while growing in popularity, face infrastructural and logistical challenges. Poor internet connectivity, outdated infrastructure and a low level of IT-literacy in the general population are amongst the headwinds hampering widespread use of the virtual court system. While the virtual hearings are aimed at aiding the speedy delivery of justice, the lack of infrastructure as well as the overload of cases has also resulted in delays in the disposal of cases. 

Legal Reforms and New Legislation

In 2024, the Judicial Service of Ghana introduced 12 Practice Directions and Administrative Guidelines under the LEADing Justice Strategic Framework. This initiative focuses on five core areas: law, ethics, assets, digitalisation and due process.

The key reforms under this Framework are as follows.

• Commercial pre-trial settlement: Parties in a commercial litigation are mandated to explore settlement options before trial.
• Plea bargaining and award of costs: Ghana’s parliament passed the Criminal and Other Offences (Procedure) Amendment Act 2022 (Act 1079) to introduce plea bargaining as a corrective measure for predominantly financial and white-collar crimes.
• Court-connected ADR: In a bid to address litigation delay and backlogs within the judicial system, ADR has been institutionalised within the court system by empowering judges to refer matters to professional ADR practitioners connected to the courts for resolution with the consent of the parties.
• Small claims debt recovery courts: On 6 August 2024, the Chief Justice launched the Small Claims Debt Recovery Courts project under which 12 specialised courts were designated to handle the myriad of small claims and debt recovery cases instituted in the District Courts across the country by individuals and companies particularly financial institutions. These 12 courts are to operate on a pilot basis with the potential of additional courts coming on stream upon a successful piloting of the project. The courts sit from 2pm to 8pm every working day and from 8.30am to 4pm on Saturdays. The objective of this project is to facilitate timely and cost-effective disposal of cases relating to recovery of debts not exceeding the sum of GHS500,000 and to also reduce the caseload of the District Courts.

These reforms aim to improve judicial efficiency, public trust and access to justice.

Some Dispute Resolution Challenges and Recommendations

Procedural delays and court backlogs

Persistent delays in adjudicating cases remain a top concern. Although digital systems have improved certain aspects, most courts still rely heavily on manual processes. To resolve this, clients are advised to incorporate robust ADR clauses in contracts and, where litigation is inevitable, engage experienced counsel to navigate procedural hurdles efficiently.

Enforcement of foreign judgments and arbitral awards

The enforcement of foreign judgments in Ghana is governed by the Courts Act 1993, Foreign Judgments and Maintenance Orders (Reciprocal Enforcement) Instrument, 1993 (LI 1575) and the High Court (Civil Procedure) Rules, 2004. These pieces of legislation, however, limit enforcement to awards emanating from countries with reciprocal arrangements.

Although Ghana is a signatory to the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York, 10 June 1958) the overriding effect of LI 1575 can make enforcement of foreign arbitral awards challenging as awards emanating from countries without reciprocal enforcement regimes can only be enforced by an action commenced on the basis of that judgment. Another challenge is that, even if an award is capable of enforcement under LI 1575, the court may decline its enforcement on public policy grounds.

However, recent judicial attitudes suggest a pro-enforcement trend, provided procedural standards are met.

Cost barriers and client perceptions

High legal fees deter many individuals and SMEs from accessing formal dispute resolution channels. Additionally, there is a general lack of awareness about the long-term value of legal services leading potential clients to often dispense with legal services until a dispute arises. Legal professionals can address these concerns by offering flexible fee arrangements, engaging in client education, and enhancing transparency in billing.

The Way Forward: Policy Recommendations and Strategic Considerations

To strengthen dispute resolution in Ghana, the following measures are critical:

• Improving digital infrastructure: Investment in internet connectivity, courtroom technology, and training of judges and lawyers.
• Public education: Campaigns to raise awareness of ADR options and their benefits.
• Capacity building: Continuous training of legal practitioners and arbitrators.
• Legislative reforms: Review of the ADR Act to align with international best practices.
• Judicial independence and accountability: Ensuring that courts remain impartial and decisions are enforced consistently.

Conclusion

Dispute resolution in Ghana is at a pivotal point. Economic realities, legal reforms and a digital revolution are reshaping both litigation and ADR. Despite persistent challenges such as delays, difficulties with the legal framework for the enforcement of judgments and arbitral awards, and the cost of litigation, the trajectory is positive. With proactive client strategies, institutional support, and continuous reforms, Ghana’s dispute resolution landscape is poised to become more efficient, accessible and aligned with global standards.