Ecobank exits Mozambique, sells subsidiary to FDH Bank

Ecobank Transnational Incorporated (ETI) has announced the sale of its shares in Ecobank Mozambique S.A. to FDH Bank Plc, a financial institution listed on the Malawi Stock Exchange.

The bank announced its exit from Mozambique in a statement filed with the Nigerian Exchange Limited (NGX) on Tuesday.

Madibinet Cisse, the company secretary, said the sale is a strategic shift in ownership and operations, with no disruption expected to employees, assets or banking services.

“EMZ is a licensed commercial bank in Mozambique, supervised and regulated by the Central Bank of Mozambique. EMZ has 4 branches located in the biggest cities of Mozambique,” the company secretary said.

“The bank has been operating in Mozambique since 2000, when it was incorporated as Novo Banco SARL, before changing its name in 2014 to Ecobank Mozambique SA, following an acquisition by ETI.

“FDH Bank Plc is listed on the Malawi Stock Exchange. The Bank provides superior digital banking, personal and business banking, corporate and institutional banking, treasury and investment banking, global markets and trade finance, as well as corporate advisory services.”

Cisse noted that the acquisition will be fully financed from FDH Bank Plc’s retained earnings.

He said the transaction has received all the necessary regulatory approvals, but it is subject to customary conditions precedent and is expected to be completed within the 2025 financial year.

“Upon completion, FDH Bank PLC will assume effective control of Ecobank Mozambique SA. This transaction has been conducted on an arm’s length basis and does not involve any related parties,” the company secretary said.

“Both FDH Bank Plc and ETI remain committed to keeping stakeholders informed of any material developments in line with their respective stock exchange listing requirements.”

‘ECOBANK’S DIVESTMENT DECISION ALIGNS WITH GROWTH STRATEGY’

Jeremy Awori, chief executive officer (CEO) of Ecobank Group, said the decision aligns with the commitment to Ecobank’s growth, transformation, and return strategy.

Awori said the exit will ensure the bank remains a competitive and meaningful player across the markets in which it operates.

“As a Pan-African financial institution, we continuously assess our operations to drive sustainable growth while maintaining our core mission of driving Africa’s financial integration and economic growth,” he said.

“The transfer of our Mozambique stake to FDH Bank PLC was given deep consideration to ensure least disruption and the best outcome for employees, customers and operations.

“We are exploring strategic partnerships with FDH Bank to maintain Mozambique’s access to our pan-African digital ecosystem for seamless cross-border payments.”

Awori added that while the bank’s direct presence in Mozambique is changing, its unwavering commitment to driving pan-African financial integration and economic growth across the continent remains stronger than ever.