A Zimbabwean High Court has intervened to break a seven-year legal impasse between two telecommunications firms, Powertel Communications and Dandemutande Investments, by mandating the appointment of a sole arbitrator to resolve their protracted contractual dispute. Justice Maxwell Takuva ruled that Dandemutande’s repeated obstruction of arbitration efforts left Powertel with no recourse but to seek judicial intervention under Article 11(4) of Zimbabwe’s Arbitration Act.
The conflict stems from a 2010 Internet Capacity Purchase Agreement, which included a clause requiring arbitration for disputes unless both parties agreed to court jurisdiction. Tensions escalated in 2017 when Dandemutande terminated the contract and allegedly withheld over US$2.29 million owed to Powertel. Initial attempts to resolve the matter through arbitration collapsed in 2018 after Dandemutande, then the claimant, failed to submit its case to retired Justice Vernanda Ziyambi, who later withdrew due to scheduling conflicts.
Five years of inactivity followed until Powertel revived efforts in 2023 by approaching the Commercial Arbitration Centre, which appointed Dr. Whatman as arbitrator. Dandemutande again objected, leading to the termination of those proceedings. This prompted Powertel’s High Court application, which faced opposition from Dandemutande on grounds of prescription—arguing the claim was time-barred—and procedural incompetence.
Justice Takuva dismissed both objections, stating that prescription arguments could only apply to substantive claims, not procedural requests for arbitrator appointments. He also clarified that while Powertel’s proposal to involve the Arbitration Centre’s chairman did not override the court’s authority, the court retained final discretion over the appointment. The ruling sharply criticized Dandemutande’s “deliberate non-cooperation” and silence during repeated arbitration attempts, noting it “forced [Powertel] to institute litigation.”
Though the court ordered Dandemutande to cover Powertel’s legal costs, it declined to impose punitive measures, citing Powertel’s five-year delay in reactivating the case after the 2018 setback. The chairman of Harare’s Commercial Arbitration Centre will now select an arbitrator to oversee renewed proceedings, potentially concluding one of Zimbabwe’s longest-running telecom disputes.
Legal analysts suggest the decision reinforces judicial support for arbitration clauses while underscoring courts’ role in resolving procedural stalemates. The outcome is closely watched in Zimbabwe’s telecom sector, where contractual disputes often intersect with rapid technological changes and infrastructure investments.
