FDH Bank Seals Landmark Deal, Acquires 98.87% Stake in Ecobank Mozambique

By Suleman Chitera

FDH Bank Plc has made a bold move on the regional stage, announcing the acquisition of a 98.87% controlling stake in Ecobank Mozambique SA (EMZ). The deal, secured from Ecobank Transnational Incorporated (ETI), signals the Malawian bank’s ambitions to cement its footprint across Southern Africa.

The acquisition, which has cleared all regulatory hurdles, is expected to be finalized within the 2025 financial year. The remaining 1.13% of shares in EMZ will stay in the hands of Mozambique’s housing development fund, Fundo Para O Fomento De Habitação (FFH).

Fuelled by Growth, Paid in Cash
FDH Bank confirmed that the entire transaction was financed through retained earnings, underscoring the bank’s financial muscle and commitment to expansion without leveraging external debt.

“This acquisition is a milestone for FDH Bank as we push forward with our regional growth strategy,” said Company Secretary Juliano Kanyongolo in a statement. “It gives us an opportunity to tap into Mozambique’s dynamic market while driving value for our shareholders.”

Strategic Fit for Both Parties
For ETI, a Togo-based pan-African banking powerhouse operating in 35 countries, the sale aligns with its Growth, Transformation, and Returns (GTR) strategy aimed at restructuring operations to unlock value across the continent.

Meanwhile, FDH Bank—currently boasting a market capitalization of K3.6 trillion (USD 2.1 billion) as of July 31, 2025—sees the deal as a gateway to new markets, enhanced revenue streams, and operational synergies.

A Gateway to Southern Africa
Once completed, FDH will assume full control of EMZ’s operations, which include four branches in Mozambique’s major cities. EMZ, formerly Novo Banco SARL, has been active in Mozambique since 2000 and took on the Ecobank brand in 2014.

What’s Next?
Industry watchers say this acquisition could set the stage for more cross-border moves by Malawian firms, potentially reshaping the region’s financial landscape. For FDH, it’s more than just a purchase; it’s a signal that Malawian banking is ready to play big in Southern Africa.

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