Ecobank to sell Mozambique stake to FDH Bank

Ecobank Transnational Incorporated has announced a strategic agreement to divest its stake in Ecobank Mozambique S.A. to FDH Bank Plc, a financial institution listed on the Malawi Stock Exchange.

In a notice filed on the Nigerian Exchange Limited on Tuesday, the transaction marks a change in ownership and operational management of Ecobank Mozambique but is not expected to disrupt banking operations, assets, or staff. Ecobank Mozambique, which has been operating in the country since 2000, currently maintains four branches in major cities and is regulated by the Central Bank of Mozambique.

FDH Bank Plc, known for its digital banking and corporate services, will finance the acquisition entirely from its retained earnings.

The deal aligns with Ecobank Group’s Growth, Transformation, and Returns strategy, focused on sustaining competitiveness and fostering pan-African financial integration.

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The Chief Executive Officer of Ecobank Group, Jeremy Awori, said the decision was made after careful consideration to ensure minimal disruption and the best outcome for customers, employees, and operations.

He also revealed plans to explore strategic partnerships with FDH Bank to maintain Mozambique’s access to Ecobank’s pan-African digital ecosystem for seamless cross-border payments.

“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.

“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 development. 

The transfer of our Mozambique stake to FDH Bank PLC was given deep consideration to ensure the 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,” the statement partly read.

The sale has received all necessary regulatory approvals and is expected to be completed within the 2025 financial year, at which point FDH Bank will take full control of Ecobank Mozambique.

Ecobank reaffirmed its commitment to driving Africa’s financial integration and economic growth despite the divestment, emphasising its ongoing focus on sustainable growth across its markets.

The transaction has received all the necessary regulatory approvals.

“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,” the statement added.