Table of Contents
Key Points
- FDH Bank acquires 98.8% of Ecobank Mozambique for $19.2 million, reinforcing its regional growth strategy and diversifying income streams.
- The remaining 1.13 percent stake is held by Mozambique’s state-backed Fundo Para o Fomento de Habitação (FFH).
- With a $2.74 billion valuation, FDH ranks as Malawi’s second most valuable stock, trailing only FMB Capital Holdings Plc.
FDH Bank, a wholly owned subsidiary of FDH Financial Holdings Limited founded by Malawian billionaire Thom Mpinganjira, has entered into a definitive agreement to acquire a majority 98.8 percent stake in Ecobank Mozambique SA from Ecobank Transnational Inc. for $19.2 million, marking its first cross-border deal.
Expansion into Southern Africa
FDH’s 98.8 percent acquisition of Ecobank Mozambique, strengthens its regional footprint and diversifies revenue streams, advancing a broader Southern Africa growth strategy while preserving capital for long-term stability. The remaining 1.13 percent stake is held by Mozambique’s state-backed housing development fund, Fundo Para o Fomento de Habitação (FFH).
Maputo-based Ecobank Mozambique, formerly a unit of Togo’s Ecobank Transnational, operates as a full-service commercial bank with retail, corporate, and investment banking offerings. It serves individuals, SMEs, and large corporates through nationwide branches and digital channels.
FDH balances growth and dividend cut
FDH company secretary Juliano Kanyongolo said the deal will unlock market expansion, revenue diversification, operational synergies, and long-term value creation for shareholders. Malawi Stock Exchange CEO John Kamanga hailed the acquisition as a milestone for the nation’s financial sector.
Alongside the acquisition, the Malawian lender declared a first interim dividend of $4.02 million, a 46 percent drop from 2024, as it moves to conserve capital for regional growth. The payout equates to MWK1.02 ($0.00059) per share compared with MWK1.89 ($0.0011) a year earlier.
FDH shares trade at MWK689.92, giving the bank a market capitalization of MWK4.76 trillion ($2.74 billion), making it the second most valuable stock on the Malawi Stock Exchange after Standard Bank Malawi Limited.
New phase for FDH
Founded in 2008, FDH Bank has become one of Malawi’s largest lenders, offering loans, savings, investments, and transaction services. Mpinganjira, who resigned as CEO of the holding company in 2020 after a bribery case tied to Malawi’s 2019 elections, was succeeded by his son William.
The Ecobank Mozambique deal signals FDH’s push to position itself as a regional player and reflects the increasing outward orientation of Malawi’s financial sector.
