Malawi’s FDH Bank Plc has signed a definitive agreement to acquire a controlling stake of 98.87% in Ecobank Mozambique SA (EMZ), marking a significant step in the bank’s regional expansion strategy.

The acquisition, which is fully financed through FDH Bank’s retained earnings, positions the Malawi Stock Exchange-listed lender for broader influence in Southern Africa.

The remaining 1.13% of EMZ shares will continue to be held by Mozambique’s Fundo Para O Fomento De Habitação, a government-run housing development fund.

Ecobank Mozambique is a licensed commercial bank with four branches located in the major cities of Mozambique.

It was initially incorporated in 2000 as Novo Banco SARL and rebranded in 2014 following its acquisition by pan-African financial group Ecobank Transnational Incorporated (ETI).

ETI, headquartered in Togo, operates in 35 African countries and maintains international offices in Paris, London, Dubai, and Beijing.

The group is listed on stock exchanges in Ghana, Nigeria, and the West African regional bourse, BRVM.

The transaction aligns with ETI’s Growth, Transformation, and Returns (GTR) strategy, which focuses on reshaping the group’s business model across various African markets.

FDH Bank Plc, which boasts a market capitalisation of K3.6 trillion (approximately USD2.1 billion) as of 31 July 2025, provides a wide range of financial services including digital, retail, corporate, institutional, treasury, trade finance, and investment banking services.

In a public announcement, the bank's Company Secretary, Juliano Kanyongolo said the acquisition is expected to unlock multiple strategic benefits, including market expansion, revenue diversification, and operational synergies, while enhancing long-term value for shareholders.

“This acquisition is a milestone in our vision to become a regional banking powerhouse,” said Kanyongolo

“It enables us to extend our footprint and deliver innovative financial solutions to a wider customer base in Southern Africa.”

The deal, which has already secured all necessary regulatory approvals, is still subject to certain conditions precedent and is expected to be finalised within the 2025 financial year.

The purchase consideration represents 0.7% of FDH Bank’s market value as at the end of July 2025.