Ecobank completes Mozambique exit, hands over to Malawi’s FDH Bank in regional strategy shift

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Ecobank completes Mozambique exit, hands over to Malawi’s FDH Bank in regional strategy shift

9:41 CAT | 29 Sep 2025

FILE - The deal transfers EMZ’s four branches located across Mozambique’s largest cities, giving FDH Bank an immediate platform to expand its regional footprint. {File photo: Malawi Broadcasting Corporation]

Ecobank Transnational Incorporated (ETI), the parent company of the Ecobank Group, has finalized its withdrawal from Mozambique after selling its entire stake in Ecobank Mozambique S.A. (EMZ) to FDH Bank Plc of Malawi.

The transaction, which received all necessary regulatory approvals, marks the conclusion of a divestment plan first announced on August 5, 2025.

“With this completion, FDH Bank Plc assumes full ownership and operational responsibility of the bank that was formerly owned in Mozambique by Ecobank,” ETI said in a statement signed by Madibinet Cisse, its Company Secretary.

The deal transfers EMZ’s four branches located across Mozambique’s largest cities, giving FDH Bank an immediate platform to expand its regional footprint.

The move is part of Ecobank’s broader strategy to streamline operations across Africa, focusing resources on high-growth markets and scaling down in areas where the Group has struggled to gain market dominance.

“This strategic decision aligns with our commitment to Ecobank’s Growth, Transformation, and Returns strategy, ensuring we remain a competitive and meaningful player across the markets in which we operate,” said Jeremy Awori, CEO of Ecobank Group.

The divestment highlights a broader trend among African financial institutions, which are increasingly rebalancing portfolios by pulling back from underperforming markets and consolidating in territories with stronger growth potential.

FDH Bank steps in

FDH Bank Plc, a leading Malawian financial institution listed on the Malawi Stock Exchange, now takes full control of EMZ. The bank financed the deal entirely from retained earnings, a sign of its capital strength. Known for its strong digital banking infrastructure and wide-ranging services—including corporate advisory, trade finance, and global markets—FDH has positioned itself as a rising regional player.

For EMZ customers and staff, ETI stressed that operations will remain uninterrupted. Services, employee contracts, and client relationships will continue under FDH’s ownership, ensuring continuity in Mozambique’s financial sector.

Founded in 2000 as Novo Banco SARL and later rebranded in 2014 when ETI acquired it, EMZ has operated as a licensed commercial bank regulated by the Central Bank of Mozambique. Its transition to FDH ownership signals the end of Ecobank’s two-decade presence in the country.

The Mozambique exit is not Ecobank’s only recent portfolio adjustment. Last month, the Group confirmed the execution of a purchase agreement that will see Nedbank Group Ltd. sell its 21.22% stake in ETI to Bosquet Investments Ltd., the private investment vehicle of Ecobank’s Chairman, Alain Nkontchou.

That deal, advised by Enko Capital Management LLP and co-advised by Absa Bank Limited’s Corporate and Investment Banking division, underscores shifting priorities among Africa’s largest banks. For Nedbank, the move reflects a decision to concentrate on its core markets in Southern and Eastern Africa, where it directly owns and controls operations.

Comparatively, Ecobank’s move aligns with a wider pattern across Africa where large pan-African lenders such as Standard Bank, Absa, and Nedbank have had to weigh profitability against geographical spread. Nedbank itself recently pulled back from ETI to concentrate resources in Southern and Eastern Africa, reflecting a consolidation wave that is reshaping how banks allocate capital across the continent.

For Ecobank, the exit from Mozambique and the reshuffling of its shareholder base fit into its ongoing Growth, Transformation, and Returns strategy. The bank is betting that a leaner, more focused footprint will deliver stronger performance and improved returns across its 35-country network.

As FDH Bank steps into Mozambique, the acquisition could position it as a bridge between Southern and Eastern Africa’s financial hubs, strengthening competition in a market where digital transformation and cross-border services are rapidly bridging payment gaps.

📢 Press Announcement Alert
FDH Bank plc announces the completion of its acquisition of EcoBank Mozambique SAhttps://t.co/xyuraOrVwL pic.twitter.com/41Wdszp3qo

— Malawi Stock Exchange (@MalawiStock) September 26, 2025