FDH Bank Plc has taken a bold step in its ambition to become a key player in Africa’s financial sector by announcing the acquisition of a controlling 98.87% stake in Ecobank Mozambique SA (EMZ). This move signals a major shift in the regional banking landscape, as the Malawi-based bank looks beyond its borders for new growth opportunities.
The announcement was made in a press statement released by FDH Bank Plc and signed by its Company Secretary, Mr. Juliano Kanyongolo. According to the statement, the remaining 1.13% of EMZ is held by Fundo Para O Fomento De Habitação (FFH), a Mozambican housing development agency. Kanyongolo stated that the transaction has already received all the necessary regulatory approvals and is expected to be finalised within the 2025 financial year, pending a few closing requirements.
“Once completed, FDH Bank Plc will take full control of EMZ, allowing the bank to improve operations, develop innovative customer services, and introduce new financial products in Mozambique,” the statement said.
This acquisition marks an important milestone in FDH Bank’s expansion plan and sets the tone for its long-term strategy of becoming a regional banking giant. The move allows the bank to diversify its revenue base, enter new markets, and provide more value to shareholders.
According to the bank, the acquisition will be financed entirely through retained earnings. The deal is valued at about 0.7% of FDH Bank’s market capitalisation, which stood at K3.6 trillion (around USD 2.1 billion) as of July 31, 2025. This shows the bank’s confidence in its financial strength and growth strategy.
FDH Bank is not new to expansion. In the past, it successfully acquired Malawi Savings Bank (MSB), a transaction that helped it increase its market share and presence in the local market. Analysts say the experience from that deal has prepared the bank for this latest move into Mozambique.
One of those speaking on the deal is Benedicto Bena Nkhoma, a well-known motivational speaker and business strategist. He said the decision by FDH Bank to enter the Mozambican market is a smart and strategic move that could bring foreign exchange income into Malawi and strengthen the bank’s overall position in the region.
“Their performance over the past few years has shown that they are ready to expand. Moving into Mozambique is a natural next step, and it will give them access to new customers, opportunities, and currency markets,” Nkhoma said.
Ecobank Mozambique SA is not a newcomer in the banking industry. The bank began operations in 2000 under the name Novo Banco SARL. It was later acquired by Ecobank Transnational Incorporated (ETI) and rebranded as EMZ in 2014. Since then, it has operated four branches in some of Mozambique’s biggest cities and is supervised by the Central Bank of Mozambique.
ETI, which is selling its majority stake in EMZ to FDH Bank, is a large pan-African financial group based in Togo. The group has a strong footprint across 35 African countries and operates internationally through its license in Paris and offices in London, Dubai, and Beijing. ETI is also listed on multiple stock exchanges, including the Ghana Stock Exchange, Nigerian Stock Exchange, and BRVM.
While ETI is known for its wide network across Africa, the sale of its Mozambique unit may reflect a restructuring or repositioning of its portfolio to focus on stronger-performing markets. On the other hand, FDH Bank sees this as an opportunity to step into one of southern Africa’s key markets.
Market watchers believe that the deal could strengthen financial cooperation between Malawi and Mozambique and increase trade flows between the two neighbouring countries. With increased banking services, businesses in both countries could benefit from better access to cross-border banking, trade finance, and foreign currency transactions.
FDH Bank’s latest move is part of a growing trend where African financial institutions are seeking regional dominance by expanding into nearby countries. The competition in the African banking sector is heating up, with banks no longer satisfied with operating within their national borders.
As regulatory procedures are completed, all eyes will be on FDH Bank and how it integrates its new Mozambican subsidiary. With proper management and strategy, the bank may not only grow its footprint but also increase its influence in the fast-changing African financial market.
