Ecobank Transnational Incorporated (ETI), a leading pan-African financial group, has finalized plans to sell its stake in Ecobank Mozambique S.A. (EMZ) to Malawi-based FDH Bank Plc. The divestment, disclosed in a filing with the Nigerian Exchange Limited (NGX), marks a strategic shift in ownership but is expected to ensure continuity for customers and employees, according to company officials.
Madibinet Cisse, Ecobank’s Company Secretary, emphasized that the transaction involves no operational disruptions, with banking services, assets, and existing staff set to remain unaffected. Established in 2000 as Novo Banco SARL and rebranded to Ecobank Mozambique in 2014 after ETI’s acquisition, EMZ operates four branches across Mozambique’s major cities and remains regulated by the country’s central bank.
FDH Bank, listed on the Malawi Stock Exchange, plans to finance the acquisition entirely through retained earnings. The Malawi-based institution offers a broad portfolio of services, including digital banking, corporate finance, and trade solutions. While the financial terms were not disclosed, the move aligns with Ecobank’s broader strategy to streamline operations and prioritize markets where it can maximize impact.
Speaking on the decision, Ecobank Group CEO Jeremy Awori described the divestment as a “strategic alignment” with the bank’s Growth, Transformation, and Returns framework. “As a pan-African institution, we routinely evaluate our portfolio to balance sustainable growth with our core mission of advancing financial integration across the continent,” he stated. Awori stressed that extensive deliberations preceded the transfer to safeguard stakeholder interests, adding that discussions are underway to retain Mozambique’s connectivity to Ecobank’s cross-border digital payment networks through partnerships with FDH.
The transition highlights ongoing consolidation trends in Africa’s banking sector as institutions recalibrate their footprints. Ecobank’s pan-African ecosystem, spanning 33 countries, positions it to leverage regional trade flows, while FDH’s expansion into Mozambique underscores its ambition to broaden its influence beyond Malawi. Analysts note the deal reflects a pragmatic approach by ETI to optimize resources while fostering collaboration between regional banks.
With Mozambique’s economy gradually recovering from recent shocks, including cyclical debt challenges and climate-related disruptions, the stability of EMZ’s operations under new ownership will be closely watched. FDH’s acquisition signals confidence in Mozambique’s long-term prospects, though integration success will hinge on maintaining service quality and navigating competitive pressures. For Ecobank, the move allows sharper focus on higher-priority markets as it balances growth ambitions with operational efficiency.
