Ecobank Transnational Incorporated (ETI), the parent company of the Ecobank Group, has announced a strategic agreement to divest its entire stake in Ecobank Mozambique S.A. (EMZ) to FDH Bank Plc, a leading financial institution listed on the Malawi Stock Exchange.
The transaction marks a significant shift in ownership and operational management, aimed at streamlining Ecobank’s regional footprint while reinforcing its pan-African growth strategy.
According to a statement by Company Secretary, Madibinet Cisse, the deal, which has received all necessary regulatory approvals, is expected to be finalized within the 2025 financial year, subject to customary conditions precedent.
Upon completion, FDH Bank Plc will assume full control of EMZ, including its four branches located in Mozambique’s largest cities.
“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, Chief Executive Officer of Ecobank Group.
A Seamless Transition with Pan-African Continuity
EMZ, a licensed commercial bank regulated by the Central Bank of Mozambique, has operated in the country since 2000, originally incorporated as Novo Banco SARL before its rebranding in 2014 following ETI’s acquisition.
ETI emphasized that the divestment will not disrupt banking operations, customer services, or employee contracts. The transaction was conducted on an arm’s length basis, with no involvement of related parties.
“We gave deep consideration to this transfer to ensure minimal disruption and the best outcome for employees, customers, and operations,” Awori added. “We are exploring strategic partnerships with FDH Bank to maintain Mozambique’s access to our pan-African digital ecosystem for seamless cross-border payments.”
FDH Bank Plc, which will finance the acquisition entirely from retained earnings, is known for its robust digital banking infrastructure and comprehensive financial services, including corporate advisory, trade finance, and global markets.
Strengthening Regional Integration
While Ecobank will no longer maintain a direct presence in Mozambique, the Group reaffirmed its commitment to pan-African financial integration and economic development.
“Our unwavering commitment to driving pan-African financial integration and economic growth across the continent remains stronger than ever,” Awori concluded.
Both ETI and FDH Bank Plc have pledged to keep stakeholders informed of any material developments in accordance with their respective stock exchange listing requirements.
What You Should Know
The development is coming after Nedbank Group Ltd., South Africa’s fourth-largest bank by assets, announced plans to sell its 21.2% stake in Ecobank Transnational Incorporated (ETI), bringing an end to a 17-year partnership that expanded its presence across Africa.
- Nedbank Chief Executive Jason Quinn said a review recognised the risks of continuing to hold onto the group’s investment in Ecobank Transnational Incorporated (ETI) due to regulatory uncertainty and a potential increase in capital requirements
- Nedbank took the decision to sell after a year-long strategic review that led to the reclassification of the Ecobank stake as a financial investment, from a strategic holding, which would need to be managed to extract maximum shareholder value.
Nedbank also announced profit rose in the first half as fee growth boosted revenue and lower credit losses cut impairment charges.
