FDH Bank buys Ecobank Mozambique

FDH Bank Expands Regional Footprint with Strategic Acquisition of Ecobank Mozambique

Post was last updated: August 10, 2025

Key Business Points

  • Regional expansion: FDH Bank plc has acquired a 98.8 percent stake in Ecobank Mozambique SA, marking a significant milestone in its regional expansion strategy and providing opportunities for market expansion, revenue diversification, and operational synergies.
  • Investment opportunities: The acquisition is expected to deliver long-term value creation for stakeholders, including shareholders and customers, and signals the maturity of Malawi’s financial sector, making it an attractive destination for investors.
  • Market growth: The deal is a testament to the growth and success of FDH Bank plc, which has exceeded the K4 trillion market capitalisation mark on the Malawi Stock Exchange (MSE) and is now among the top players in the region, with zinthu zokwana za ife (many investment opportunities) for local entrepreneurs and businesses.

FDH Bank plc, a home-grown Malawian bank, has made a significant move in its regional expansion strategy by acquiring a 98.8 percent stake in Ecobank Mozambique SA (EMZ) through a definitive agreement with Ecobank Transnational Incorporated (ETI). The remaining 1.13 percent stake in EMZ is held by Fundo Para O Fomento De Habitação (FFH), a Mozambican housing development fund. According to FDH Bank plc company secretary Juliano Kanyongolo, the consideration is equal to 0.7 percent of the bank’s market capitalisation as at July 31 2025.

The acquisition is expected to deliver strategic benefits, including market expansion, revenue diversification, operational synergies, and long-term value creation for stakeholders. This move is a significant milestone for FDH Bank plc, which has grown its value on the MSE over the past four years. The bank’s managing director, Noel Mkulichi, had earlier mentioned that the bank conducted market surveys in Zambia and Mozambique to assess the feasibility of penetrating the regional markets as part of its long-term expansion strategy.

The acquisition has been welcomed by industry players, with MSE chief executive officer John Kamanga describing it as critical to the economy, as it signals the maturity of the country’s financial sector. Ecobank Group, which operates in 35 African countries as well as in France, the United Kingdom, United Arab Emirates, and China, has also expressed its commitment to the deal, stating that it aligns with their growth, transformation, and returns strategy.

FDH Bank plc is now among the three MSE-listed banks that have subsidiaries across Malawi borders, following in the footsteps of FMB Capital Holdings plc and National Bank of Malawi plc. The bank’s listing on the MSE in August 2020 has been a success, with its market capitalisation exceeding the K4 trillion mark and its share price trading at K599.99. This development is expected to attract more investors to the Malawian market, with kufika kwa nje (opportunities for growth) for local businesses and entrepreneurs.

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Vanessa Banda
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