Malawi’s home-grown FDH Bank plc has acquired a 98.8 percent stake in Ecobank Mozambique SA (EMZ) through a definitive agreement with Ecobank Transnational Incorporated (ETI), the parent company of Ecobank Group.
The remaining 1.13 percent stake in EMZ is held by Fundo Para O Fomento De Habitação (FFH), a Mozambican housing development fund.
In a statement yesterday, FDH Bank plc company secretary Juliano Kanyongolo said the consideration is equal to 0.7 percent of the bank’s market capitalisation as at July 31 2025.
“For FDH Bank plc, the transaction represents a significant milestone in the bank’s regional expansion strategy,” he said, adding that the transaction will enable the Malawi Stock Exchange (MSE)-listed bank to extend its footprint in southern Africa.
Kanyongolo said the move is expected to deliver strategic benefits, including market expansion, revenue diversification, operational synergies and long-term value creation for stakeholders.
On the other hand, ETI company secretary Madibinet Cisse yesterday said the decision aligns with their commitment to Ecobank’s growth, transformation and returns strategy, ensuring “we remain a competitive and meaningful player across the markets in which we operate”.
During the bank’s Investors’ Forum earlier this year, FDH Bank plc managing director Noel Mkulichi said 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.
MSE chief executive officer John Kamanga described the acquisition as critical to the economy as it signals maturity of the country’s financial sector.
On the other hand, Ecobank Group operates in 35 African countries as well as in France, the United Kingdom, United Arab Emirates and China.
FDH Bank, established on July 18 2008 as a subsidiary of FDH Financial Holdings Limited by business mogul and philanthropist Thomson Mpinganjira, is now among the three MSE-listed banks that have subsidiaries across Malawi borders after FMB Capital Holdings plc through First Capital Bank entered Zambia, Mozambique, Zimbabwe and Botswana markets while National Bank of Malawi plc owns 51 percent stake in Akiba Commercial Bank of Tanzania.
FDH Bank plc listed on MSE in August 2020 and this week exceeded the K4 trillion market capitalisation mark on the 16-counter shares market and its share price is trading at K599.99.
