The ECOBANK Group said it has reached an agreement to sell its stake in Ecobank Mozambique SA (EMZ) to FDH Bank Plc, a Malawian bank, in a move to exit the Mozambique market.

The Group, Ecobank Transnational Incorporated (ETI), announced this in an official disclosure to the Nigerian Exchange Limited (NGX) on Tuesday, August 5.

“This transaction represents a strategic change in ownership and operational management with no expected disruption to banking operations, assets, or employees,” the pan-African bank stated.

A licensed commercial bank, supervised and regulated by the Central Bank of Mozambique, with four branches, the Mozambique subsidiary came into operation in the year 2000 when it was incorporated as Novo Banco SARL, before changing its name in 2014 to Ecobank Mozambique SA, following an acquisition by ETI.

According to the parent company of Ecobank Nigeria, the acquisition is to be fully financed from FDH Bank Plc’s retained earnings.

“This strategic decision aligns with our commitment to Ecobank’s Growth, Transformation, and Returns strategy, ensuring we remain a competitive and meaningful player across the markets in which we operate.

“As a Pan-African financial institution, we continuously assess our operations to drive sustainable growth while maintaining our core mission of driving Africa’s financial integration and economic growth,” the Group Chief Executive Officer, Jeremy Awori, said.

He hinted that the transfer was considered to ensure the least disruption and the best outcome for employees, customers, and operations.

“We are exploring strategic partnerships with FDH Bank to maintain Mozambique’s access to our pan-African digital ecosystem for seamless cross-border payments.

“While our direct presence in Mozambique is changing, our unwavering commitment to driving pan-African financial integration and economic growth across the continent remains stronger than ever,” Awori added.

The bank stated further that the transaction has received all the necessary regulatory approvals, subject to customary conditions precedent, and is expected to be completed within the 2025 financial year.

Upon completion, FDH Bank will assume effective control of Ecobank Mozambique SA.

The ICIR reports that as a pan-African bank, the Ecobank Group currently has a presence in 35 African countries, with a banking license in Paris and international offices in London, Dubai, and Beijing.