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

Call for pan-African contact centre association

Interactive Intelligence has called for the creation of a call centre association for Nigeria and other African countries as a way of promoting a standard for call centres. Read More

AMI, Strathmore launch free online courses for managers and entrepreneurs in Africa

Managers and entrepreneurs in Africa can now gain advanced skills for free, with the launch of free online courses courtesy of the African Management Initiative (AMI). Read More

Bytes, NCR and Barclays in ATM deal

Bytes Managed Solutions, the exclusive distributor of NCR technology solutions in Southern Africa had signed a deal with Barclays Bank of Botswana (BBB) for the installation of intelligent cash deposit ATMs. Read More

Orange reports 8% revenue growth

Integrated telecommunications service provider Orange has announced an 8% revenue growth for the overall business for the first half of this year, compared to the same period last year. Read More

Business Connexion appoints CEO

Business Connexion Group Limited has announced that Mr. Isaac Mophatlane has been appointed Chief Executive Officer of the company. Read More

Managed service support key to growth for iWayAfrica

Pan African telecoms operator, Gondwana International Networks (GIN) has announced that its iWayAfrica business will be partnering with managed services company, SevenC Computing to grow its foothold in key Africa territories.  Read More

Dire need for top IT leadership

There is a huge demand for top leaders with high-level information technology skills, but there are very few candidates who can fill these positions, one of SA’s leading executive search experts says. Read More

AccTech Systems moves strategically into Africa

AccTech Systems has signed an Independent Software Vendor (ISV) agreement with Microsoft to provide solutions to the Microsoft Dynamics NAV and GP Dynamics channel in Africa. Read More

Acer steps up MEA commercial focus

Acer Middle East and Africa is renewing its focus on the region’s commercial market, with new products and services and an enhanced channel strategy. Read More

uAfrica.com rolls out African expansion plan

uAfrica.com, a leading South African eCommerce technology company, today announced the launch of the first phase of its expansion plan into the rest of Africa.  Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionSage HR AfricaMTN BusinessSchneider ElectricMultichoice

FEATURED STORY

Widening ICT skills gap: Cause for concernWidening ICT skills gap: Cause for concern

Nigeria's FDI gains could be eroded by the widening gap in indigenous skilled ICT manpower, writes Kokumo Goodie.

IN DEPTH

Kenya rolls out e-extension to improve agricultureKenya rolls out e-extension to improve agriculture

In a bid to curb the overwhelmed number of agricultural extension officers in Kenya, the ministry of agriculture is embracing technology with their introduction of E-Extension services, which are aimed at reaching out to over 7 million farmers annually.

COMPANY NEWS

How the cloud can power entrepreneurship and urbanisation in Africa

Cloud computing is not only fundamentally changing the way business operates, it is also driving a new wave of job creation opportunities, says SAP Africa.