• Ecobank is selling its Mozambique unit to FDH Bank as part of a strategic shift.
• The sale will be fully funded by FDH Bank’s own capital, pending regulatory approvals.
• Ecobank plans to maintain digital and cross-border payment ties with Mozambique.

Ecobank Transnational Incorporated (ETI) has agreed to sell its Mozambique subsidiary, Ecobank Mozambique SA, to FDH Bank Plc, a listed financial institution on the Malawi Stock Exchange for an undisclosed amount. The deal, announced on yesterday is part of a strategic realignment under Ecobank's "Growth, Transformation, and Returns" (GTR) plan.

The transaction is expected to close later this year, subject to regulatory approvals. FDH Bank will finance the acquisition entirely with its own capital, without taking on debt or raising external funds. This marks the bank’s entry into the Mozambican market and expands its regional presence. FDH Bank is already active in digital banking, corporate banking, and financial markets.

Jeremy Awori, CEO of Ecobank Group, called the sale a “strategic decision” that aligns with the group’s aim to remain a competitive and relevant player in all its markets. He added that the group regularly reviews its operations to support sustainable growth while staying focused on its core mission of promoting financial integration and economic development across Africa.

The decision reflects Ecobank’s effort to streamline its operations and focus on key markets, while still supporting regional financial integration. Ecobank intends to keep offering digital payment and cross-border transfer services linked to Mozambique through a planned partnership with FDH Bank. This deal allows FDH Bank to enter a new market without building infrastructure from scratch and broadens its international reach.

Ecobank Mozambique SA is part of the group’s Central, Eastern, and Southern Africa (CESA) region. In this area, Ecobank reported a pre-tax profit of $207 million for the first half of 2025, up from $163 million in the same period in 2024—an increase of 27%. Revenue in the region also rose 19%, reaching $392 million.

Net interest income contributed strongly to this growth, rising 15%—or 17% at constant exchange rates—to $210 million. This was driven by wider margins and an increase in the average total of investment securities and loans in the region.

Ecobank acquired its Mozambique unit in 2014. The bank had been operating under the name Novo Banco since 2000. It remains under the supervision of the Central Bank of Mozambique, which will continue after the change in ownership. Once the transaction is complete, Ecobank’s footprint in sub-Saharan Africa will cover 34 countries.