Ecolife insurance back on track
BUSINESS| Oct. 25, 2011, 7:13 p.m.
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.
MORE BUSINESS NEWS
Safaricom tops best managed company listSafaricom has been named the ‘Best Managed Company in Kenya’ by leading market analysts. Read More
Equity Group appoints Bhartesh Shah as COOEquity Group Holdings has announced the appointment of Mr. Bhartesh Shah to the Chief Operations Officer (COO) position. Read More
The nine top trends in CEM todayCustomer experience management that genuinely enhances customer ‘stickiness’ depends on new strategies and now mindsets, says Frost & Sullivan. Read More
MTN, former ATCON chief disagree over naira devaluationMTN Nigeria and a former president, Association of Telecoms Companies of Nigeria (ATCON) have disagreed over further devaluation of the naira. Read More
MTN Business launches Supplier Development Programme in MpumalangaMTN Business has reaffirmed its commitment to develop small and medium-sized enterprises (SMEs) within Nelspruit by extending its Supplier Development Programme (SDP) and Accelerator Programme (AP), the company’s enterprise development initiatives, to the Mpumalanga Province of South Africa. Read More
VMware appoints Senior Vice President and GM of EMEAVMware, a global leader in cloud infrastructure and business mobility, today announced the appointment of Jean-Pierre Brulard as Senior Vice President and General Manager of EMEA. Read More
InfoGraphics chief urges investment in tech start-upsThe Managing Director of InfoGraphics Nigeria, Chinenye Mba-Uzoukwu, has urged wealthy Nigerians to invest in tech start-ups. Read More
Convergence Partners acquires stake in Nigerian Fintech firmConvergence Partners has announced an investment of $20m for a strategic, minority stake in Venture Garden Nigeria. Read More
MTN Business augments its management team further with key strategic appointmentMTN Business SA has appointed an industry veteran, Mariana Kruger, as General Manager of Private Sector. Read More
SA Competition Tribunal approves Telkom-BCX mergerBusiness Connexion Group Limited has announced that the Competition Tribunal of South Africa has approved the proposed merger between Business Connexion Group Limited ("BCX") and Telkom SA SOC Limited ("Telkom") with the imposition of conditions. Read More
FEATURED STORYAlcatel-Lucent VP calls for collaboration to achieve Data Revolution in Africa
The Vice president of Alcatel-Lucent Africa, Daniel Jaeger, has reiterated the need for African stakeholders to work together to address challenges in the way of ICT development in Africa.
BEST READ NEWS
IN DEPTHHigh tech homes: Just press play
High tech, digital homes where everything is automated and connected aren’t the stuff of science fiction any longer, says BNC Technology.
COMPANY NEWSMTN SA expands its FTTH network to the Western Cape
MTN South Africa has expanded its fibre to the home (FTTH) footprint to the Western Cape, and trenching has already commenced in the picturesque suburbs of Fresnaye ...