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

Contact centres: cog in the machine or customer experience hub?

As customer experience becomes the primary competitive advantage in business, the role of the contact centre is changing significantly. But whether it becomes the heart of the business or a component of the bigger machine depends on the business, say African contact centre experts. Read More

Building an African Dream: The Wyzetalk journey

Enterprise social networking company Wyzetalk examines the challenges and opportunities it encountered as a startup in Africa. Read More

African organisations under pressure to sharpen skills retention and employee engagement

Businesses across major African economies such as Kenya and Nigeria are coming under increasing pressure to align their strategies for retaining talent, compensating employees and engaging with their workforces with good international practices. Read More

The Workplace of the Future

Philip Gregory, Senior Regional Executive: Johnson Controls GWS, Middle East & Africa, talks about the workplace of the future, how it will impact the workforce and how businesses can navigate the tension between employee demands and the needs of the corporation. Read More

New MTN boss Ebenezer Asante starts work at MTN Ridge office

The former Chief Executive Officer for MTN Rwanda Ebenezer Asante has started work on Friday as the new CEO of Ghana’s leading network operator MTN at its plush Ridge Head quarters in Accra. Read More

Tigo Ghana CEO 2nd on Sweden’s list of 75 young and promising women

The CEO of Tigo Ghana limited, Roshi Motman, has been named as the second most young, promising and prominent female executive on Sweden’s tall list of 75 outstanding women.   Read More

Safaricom non-voice revenue, subscriber numbers show strong growth

Safaricom has reported a total revenue increase of 13% to Kshs 163.4bn, with non-voice service revenue increasing by 27% to Kshs 68.8bn.  Read More

She Leads Africa launches 2015 Entrepreneur Showcase

The premier platform for young female entrepreneurs across Africa has launched this year’s competition, with a $15,000 cash prize for the winners. Read More

Africa highlighted as high potential tech market

Africa’s trade potential has come under the spotlight at the 5th annual DHL Global Technology Conference in Dubai. Read More

Liquid Telecom names new Group Managing Executive

Willem Marais has been appointed to the post of Group Managing Executive for Liquid Telecom Group and also joins as the Chief Executive Officer of Liquid Telecom South Africa. Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4Afrika

FEATURED STORY

The transformative power of affordable smartphones and unlimited data in GhanaThe transformative power of affordable smartphones and unlimited data in Ghana

Smartphones are helping transform their lives of ordinary people in Ghana, Reports Nana Appiah Acquaye.

IN DEPTH

NIMC infrastructure must be managed by credible people: NIMC chiefNIMC infrastructure must be managed by credible people: NIMC chief

NIMC’s chief speaks to Kokumo Goodie about the role of the NIMC and his own legacy.