Third-party funding in arbitration proceedings in Zimbabwe

In terms of section 22A of the Legal Practitioners Act [Chapter 27:07] (the Act) as read with the Legal Practitioners (Contingency Fee Agreements) Regulations, 2014 (the Regulations) it is only registered legal practitioners who may enter into third-party funding in Zimbabwe.

The Act and the Regulations preclude non-lawyers and laymen from providing third- party funding in Zimbabwe in consideration of a share of the proceeds of the legal action if the litigation is successful. In order to determine whether to enter into a contingency fee agreement in respect of arbitration proceedings in Zimbabwe, one should have regard to numerous factors.

P Kanokanga, The Law of Costs in Zimbabwe: Text, Cases & Materials (2021) 573 observed that:

Therefore, a firm of up to date practitioners, specializing in commercial arbitration or regularly handling matters of arbitration on a contingency basis should consider the prospects of success, the amount involved, the aspects involved or related to the arbitration process, such as the arbitration agreement, the seat, the composition of the arbitral tribunal, the applicable laws, the probable duration of the arbitration as well as the jurisdiction where the arbitral award is to enforced.