Ecolife insurance back on track

BUSINESS

|
Image: By BiztechAfrica
Ecolife insurance back on track

By Alfonce Mbizwo, Harare, Zimbabwe

A venture to provide life insurance to subscribers of Zimbabwe’s Econet Wireless is back on after Namibia’s Trustco obtained a High Court order to execute an earlier court judgment nullifying the cancellation of the agreement.

In July this year, Econet lost the bid to terminate Trustco Mobile contract in a mobile-based life insurance project after the High Court of Zimbabwe issued an interim order against the mobile network operator.

The latest ruling, however, is subject to Supreme Court appeal.

By close of business Tuesday, Econet chairman Tawanda Nyambirai had not indicated if he plans to appeal after losing every court battle on the issue.

Trustco Mobile, a wholly owned subsidiary of Trustco Group Holdings Limited, had applied for an interdict against Econet Wireless seeking to enforce a contract entered between the two companies in a mobile-based life insurance project, Ecolife.

Last week, the JSE-listed Trustco notified its shareholders of the High Court order: “The following order has been granted by the High Court of Zimbabwe on 12 October 2011: "First Applicant (Trustco Mobile (Pty) Ltd) and Second Applicant (Trustco Group International) are hereby allowed to execute the judgment as handed down in HC 6065/11 on 25 July 2011.”

The July High Court order directed Econet to “restore to (Trustco Mobile) the internet based reporting links and all access to Trustco Mobile hardware and software, thus enabling it to monitor and process airtime purchase transactions and otherwise perform its obligations in terms of the agreement.”

It also directed that Econet refrain from undertaking and implementing a competing, infringing service to that provided by Trustco Mobile in terms of the agreement.

Under the arrangement, Econet subscribers received life cover and bonus points against purchase of airtime while Trustco provided the software and maintenance services. Econet would then purchase life cover from First Mutual life, a Zimbabwean insurance firm.

Econet terminated the contract at the end of May, accusing Trustco Mobile of breaching the contract between the two companies.

Trustco said it had earlier suspended its service after Econet failed to pay USD4.8 million in outstanding royalty fees for the use of its system. It also suggested the fallout may have been due to its refusal to an offer by Econet to acquire a stake in the company following the success of the Ecolife product.



Share the News

Get Daily Newsletter

comments powered by Disqus

MORE BUSINESS NEWS

Orange to acquire Millicom subsidiary in DRC

Orange and Millicom have signed an agreement leading to Orange’s acquisition of Millicom’s operations in the DRC. Read More

Jovago gains a major new investor in 75 million euros funding round

The Jovago.com hotel booking website, and Axa, a leader in insurance and asset management, have announced a partnership to develop Jovago and a new round of funding to boost its activities in Africa.  Read More

Ringier Africa and Asia Pacific get new structure and leadership

Ringier is restructuring its international market set-up for the beginning of the new year, with four dedicated teams established for each of the African business models.  Read More

Travelstart secures strategic partnership with MTN

Amadeus, the global technology investor, has announced a $40m investment in Travelstart in partnership with MTN, Africa’s leading mobile and digital life services operator.  Read More

VMware appoints new Regional Director of SSA

VMware has announced the appointment of Matthew Kibby as regional director of Sub-Saharan Africa (SSA). Read More

More than 700 delegates at Sage’s first African Business Partner Conference in South Africa

Sage’s first African Business Partner Conference in SA marks a milestone in Sage’s journey towards becoming the global market leader for integrated accounting, payroll and payment systems. Read More

SweepSouth secures funding from top SA Venture Capitalists

Vumela Fund has backed online home cleaning services platform SweepSouth. Read More

Smarter use of digital skills, tech, could boost global economy by $2 Trillion: Accenture

Optimizing the use of digital skills and technologies could generate $2 trillion of additional global economic output by 2020, according to a new study by Accenture. Read More

Ghana’s real estate industry to benefit from MLS database

Real Estate Professionals in Ghana will soon have access to a new Multiple Listing Services (MLS)  designed to relieve them of the stress of listing properties.  Read More

Online shop Dakika launches in Kenya

Dakika online, a Kenyan owned e-commerce platform, has launched its operations in Kenya to offer a stress free shopping experience to online shoppers across the country. Read More

PRESS OFFICES

Sage EnterpriseSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4AfrikaNetworks Unlimited

FEATURED STORY

Viber Spreads Good Vibes in Africa with the introduction of public chats Viber Spreads Good Vibes in Africa with the introduction of public chats

Viber, one of the leading messaging and calling apps with more than 664 million unique users worldwide, has opened its latest social channel ‘Public Chats’ to partners in Africa and the Middle East. 

IN DEPTH

Poised for greater heights – Roshi Motman, AfricaCom CEO of the Year WinnerPoised for greater heights – Roshi Motman, AfricaCom CEO of the Year Winner

Roshi Motman is not your average CEO. Since taking up the reins as the first female CEO of Tigo Ghana in 2014, she has led the Tigo brand through a remarkable transformation.