As a governance expert, arbitration clauses are vital in cross-border deals, per Alternative Dispute Resolution Act, 2010 (Act 798) in Ghana. They ensured efficient resolutions during DDEP restructurings.

Significance of Arbitration Clauses:

• Neutrality and Expertise: Provides neutral forum (e.g., ICC, LCIA) with banking specialists, avoiding biased national courts. Example: In Ghana-China loans, arbitration in Singapore mitigated sovereign risks.
• Confidentiality: Protects sensitive info, unlike public litigation; crucial for reputation in Ghana’s banking sector post-cleanup.
• Enforceability: New York Convention (ratified by Ghana) ensures awards enforceable globally, bypassing enforcement hurdles like under Brussels Convention.
• Flexibility and Speed: Custom procedures faster than courts; vital for syndicated loans where delays erode profitability.
• Cost-Effectiveness: Lower costs long-term; includes in facility agreements per market practice.
• Mitigating Jurisdiction Issues: Overrides forum non-conveniens; non-exclusive clauses allow options.

Practical: Ecobank’s use in African trade finance reduces disputes, aligning with BoG’s international standards for resilience.

Marks: 20 for comprehensive points with examples.