Ecobank Transnational Incorporated (ETI) has announced the divestment of its entire stake in Ecobank Mozambique S.A. (EMZ) to FDH Bank Plc, a leading Malawian financial institution listed on the Malawi Stock Exchange, as part of a broader strategic realignment.
The deal, which marks a significant shift in ownership and management, will not affect EMZ’s operations, assets, or employees, according to a statement by Ecobank. The transaction has received all necessary regulatory approvals and is expected to be finalised within the 2025 financial year, subject to standard conditions precedent.
EMZ, a licensed commercial bank regulated by the Central Bank of Mozambique, has been operating in the country since 2000, initially as Novo Banco SARL. It was rebranded to Ecobank Mozambique S.A. in 2014 after its acquisition by ETI. Today, EMZ operates four branches in major cities across Mozambique.
FDH Bank Plc, the acquiring entity, is one of Malawi’s leading banks and offers a broad suite of services, including digital banking, personal and business banking, corporate banking, treasury and investment services, global markets, trade finance, and corporate advisory. The bank plans to finance the acquisition entirely through retained earnings.
“This strategic decision aligns with our commitment to Ecobank’s Growth, Transformation, and Returns strategy,” said Jeremy Awori, Group CEO of Ecobank. “It ensures we remain a competitive and impactful player in the markets we choose to operate in, while continuing to promote Africa’s financial integration and economic growth.”
Awori emphasised that the decision to exit Mozambique was taken with careful consideration for all stakeholders. “The transfer of our Mozambique stake to FDH Bank Plc was carefully evaluated to ensure minimal disruption and to protect the interests of employees, customers, and the wider operations,” he said.
He added that Ecobank is exploring future partnerships with FDH Bank to ensure Mozambique remains connected to Ecobank’s pan-African digital infrastructure, especially for cross-border payments.
“Although we are changing our direct presence in Mozambique, our commitment to Africa’s financial integration remains steadfast,” Awori concluded.
The transaction was conducted on an arm’s length basis and does not involve any related parties. Both ETI and FDH Bank Plc have pledged to keep stakeholders informed of any material updates in accordance with their respective listing requirements.
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