Ecobank Transnational Incorporated (ETI) plans to sell its 98.8% stake in its Mozambique unit to FDH Bank Plc, Malawi’s largest lender by market capitalisation, as it draws the curtain on its 11-year run in the Southern African country.
FDH Bank Plc disclosed the sale in a statement on Tuesday, describing it as a strategic expansion that strengthens its regional ambitions. The value of the transaction, which is expected to close within the 2025 financial year, was not disclosed.
ETI first entered Mozambique in June 2014 when it bought a 96% interest in Banco ProCredit, a former unit of Germany’s ProCredit Holding. The remaining 1.13% of Ecobank Mozambique is held by the state-backed housing fund, Fundo Para O Fomento De Habitação.
The deal, which has received all necessary regulatory approvals, will see FDH assume effective control of Ecobank Mozambique SA, whose operations span four branches in the country’s largest cities, offering consumer banking, microfinance and bancassurance services.
Jeremy Awori, group chief executive of Ecobank, said the decision reflects the lender’s commitment to streamlining operations under its Growth, Transformation and Returns strategy.
“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,” he said in a separate statement.
He added that Ecobank may collaborate with FDH Bank to deepen cross-border payments in Mozambique through its pan-African digital ecosystem.
FDH expands Southern Africa footprint
FDH, which is listed on the Malawi Stock Exchange with a market capitalisation of around MK3.6 trillion (approximately $2.1 billion) as of July 31, 2025, said the acquisition would be funded entirely from retained earnings and represents 0.7% of its July-end market value.
As of August 5, 2025, the bank’s valuation had risen to MK4.1 trillion, or roughly $2.3 billion, making it the country’s largest listed lender.
The bank expects the deal to deliver market expansion, revenue diversification and long-term value.
“The transaction enables FDH Bank to extend its footprint in Southern Africa,” it said, highlighting the potential for synergies in products, innovation and operational efficiency.
Nedbank plots exit as ETI gains surge
ETI’s divestment came on the same day South Africa’s Nedbank announced plans to sell its 21.2% stake in the group, worth around $115.9 million at current market prices.
The move would end a 17-year investment that originally totalled $500 million.The sale forms part of Nedbank’s strategy to refocus on Southern and East Africa.
The lender said its board has approved the disposal and it is now seeking buyers to complete a “clean deal,” meaning a full exit.
Nigeria capital boost and earnings growth
The Togo-based group is also under pressure to inject $50 million into its Nigerian subsidiary to meet capital adequacy rules, according to a June note by S&P Global.
It made a $10 million injection last year and has issued promissory notes for the latest capital call, due before the end of August.
In the first half of 2025, the group posted an after-tax profit of $278.8 million, up from $227.3 million a year earlier. Gross earnings rose by 24% to $1.5 billion, underscoring its resilience despite restructuring moves across its portfolio.
