Ecobank Transnational Incorporated (ETI), the parent company of the pan-African Ecobank Group, has exited the Mozambican market following the sale of its 98.8% stake in Ecobank Mozambique S.A. (EMZ) to FDH Bank Plc, a leading financial institution listed on the Malawi Stock Exchange. The transaction, announced on August 5, 2025, ends Ecobank’s 11-year presence in Mozambique.
The remaining 1.13% stake in EMZ is held by Mozambique’s Fundo Para O Fomento De Habitação (FFH). The FDH Bank acquisition of a 98.8% stake in Ecobank Mozambique is expected to be finalized within the 2025 financial year, subject to customary closing conditions. Upon completion, FDH Bank will assume effective control of Ecobank Mozambique, gaining immediate access to the market and its banking infrastructure.
Ecobank’s Entry and Exit from Mozambique
Ecobank’s entry into Mozambique began in June 2014, when it acquired a 96% stake in Banco ProCredit, a subsidiary of Germany’s ProCredit Holding. The acquired entity, initially incorporated in 2000 as Novo Banco SARL, was later rebranded as Ecobank Mozambique S.A. (EMZ). Since then, EMZ has operated under the supervision of the Central Bank of Mozambique, offering a range of banking services including retail banking, microfinance, and bancassurance, from four branches located in major urban centers.
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The sale of Ecobank Mozambique is part of ETI’s ongoing efforts to optimize its operations and concentrate on high-priority markets across its 36-country network, which includes offices in France, the UK, the UAE, and China. The move coincides with a realignment by other stakeholders, including Nedbank Group, which recently announced plans to sell its 21.2% stake in ETI, citing limited operational synergies and increased regulatory complexity.
Strategic Rationale for Divestment
The Ecobank sale of 98.8% of its Mozambique unit is driven by its GTR strategy, which focuses on sustainable growth, operational efficiency, and shareholder value. Jeremy Awori, CEO of Ecobank Group, said the decision aligned with the bank’s long-term objectives and was part of ongoing efforts to assess operations, drive sustainable growth, and support financial integration across Africa.
He also emphasized that the transaction was structured to minimize disruption. Ecobank has assured employees, clients, and regulators that the change in ownership will not affect EMZ’s operations, assets, or workforce. Additionally, ETI is exploring a partnership with FDH Bank Plc to maintain Mozambique’s connection to Ecobank’s pan-African digital ecosystem, especially in cross-border payments.
FDH Bank’s Regional Expansion Strategy
The FDH Bank acquisition of Ecobank Mozambique is a key step in the Malawian bank’s expansion into Southern Africa. FDH Bank Plc, founded in 2008 as a subsidiary of FDH Financial Holdings Limited, has established itself as a major player in Malawi’s banking sector, offering corporate banking, digital banking, treasury, and investment services.
Listed on the Malawi Stock Exchange since August 2020, FDH Bank had a market capitalization of K3.6 trillion (approx. USD 2.1 billion) as of July 31, 2025. The acquisition of EMZ, valued at approximately 0.7% of its market capitalization, will be funded entirely through retained earnings, eliminating the need for external financing.
Juliano Kanyongolo, FDH Bank’s Company Secretary, said the acquisition would support the bank’s regional growth ambitions, diversify income streams, and build on its previous integration experience, including the successful FDH Bank acquisition of Malawi Savings Bank (MSB). He added that FDH Bank Plc planned to use EMZ’s infrastructure to introduce new banking products and improve customer experience in Mozambique.
Regulatory Approvals and Transaction Structure
The transaction has already received the necessary approvals from relevant authorities, including the Central Bank of Mozambique. It was structured as an arm’s-length transaction, with no related-party involvement, in accordance with stock exchange listing requirements.
Both ETI and FDH Bank confirmed that they will continue to update stakeholders on any material developments relating to the FDH Bank acquisition of Ecobank Mozambique. The transfer of ownership is expected to be completed before the end of the 2025 financial year.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.