Ecobank Transnational Incorporated (ETI) has completed its formal withdrawal from Mozambique after finalising the sale of its local subsidiary, Ecobank Mozambique S.A., to FDH Bank Plc, a Malawian financial institution pursuing regional growth across Southern Africa. The transaction, which closed on 29 September 2025, marks the culmination of Ecobank’s 25-year presence in Mozambique and underscores a recalibration of its pan-African strategy toward markets where it holds competitive advantage.
Announced initially in August 2025 through a notice filed on the Nigerian Exchange Limited, the transaction proceeded following regulatory approvals from financial authorities in both Malawi and Mozambique. The acquisition grants FDH Bank full ownership and operational control, effectively transitioning Ecobank’s four Mozambican branches and their associated workforce under new management.
The change of ownership is expected to maintain continuity in customer service and employment, as operations will continue without immediate structural disruptions. Since its establishment in 2000 under the supervision of the Central Bank of Mozambique, Ecobank Mozambique has played a notable role in the nation’s evolving financial ecosystem.
For FDH Bank Plc—one of Malawi’s leading financial institutions listed on the Malawi Stock Exchange—the acquisition aligns with its broader strategy of regional expansion into Mozambique and Zambia. The transaction was entirely financed from retained earnings, reflecting the institution’s financial stability and long-term confidence in Mozambique’s market potential. This funding model is significant, signalling an inwardly generated investment approach that prioritises sustainability over external leverage.
FDH Bank has demonstrated consistent performance in recent years, with its cost-to-income ratio improving from 45% in 2023 to 34% in 2024. The bank continues to invest in digital transformation and customer-centric banking solutions, both of which are expected to shape its entry into Mozambique’s competitive financial sector.
Ecobank’s divestment, while noteworthy, is not an isolated event. It forms part of a broader strategic repositioning by the pan-African banking group as it concentrates resources on markets offering higher returns. In the first half of 2025, Ecobank reported a pre-tax profit of US$207 million in its regional operations, an increase of 27% from the previous year, with revenues climbing 19% to US$392 million. These figures indicate resilience even amid ongoing portfolio optimisation.
Nonetheless, the decision raises broader questions about Ecobank’s long-term footprint across Africa. While the institution reaffirms its commitment to fostering financial integration across the continent, its recent withdrawals from smaller markets suggest a more selective approach to presence and performance. This reflects a common challenge facing African banking groups: balancing continental reach with operational efficiency, particularly in economies where achieving economies of scale proves complex.
For Mozambique’s financial landscape, FDH Bank’s entry introduces new dynamics. The acquisition provides the Malawian bank with immediate infrastructure, an existing client base, and local market intelligence—advantages that can accelerate its regional growth trajectory. Whether FDH Bank can successfully navigate Mozambique’s regulatory framework and deepen financial inclusion will depend on its adaptability and commitment to local engagement.
From a pan-African perspective, the transaction illustrates a maturing intra-African investment trend. Unlike previous eras characterised by external capital dominance, this deal underscores an emergent pattern of African-led cross-border acquisitions grounded in regional knowledge and confidence. Such movements signal a shift towards homegrown integration and mutual growth among African economies, reflecting evolving financial sovereignty across the continent.
In this context, Ecobank’s exit and FDH Bank’s entry are not merely transactional—they represent the fluid and interconnected nature of Africa’s modern banking ecosystem, where strategic recalibration and regional ambition coexist as essential forces shaping the continent’s financial future.
