Daily Lagos Data Centre Conflicts
Ecobank Exits Mozambique Market, Sells Stake to Malawi's FDH Bank
Ecobank, the pan-African bank, has announced its decision to sell its entire stake in Ecobank Mozambique S.A. to FDH Bank Plc of Malawi. This move is part of a strategic decision to streamline operations and strengthen its position in 35 other African markets.
The sale, which has received all necessary regulatory approvals, marks Ecobank’s complete exit from the Mozambican market. Ecobank acquired the Mozambican entity in 2014 but has now opted to divest it to FDH Bank Plc, a Malawian lender listed on that country's stock exchange.
Strategic Focus for Ecobank
The exit is part of a broader strategic reconfiguration to focus resources on fewer markets with better returns and less regulatory complexity. This move helps Ecobank raise capital and improve capital adequacy across its group, as the bank has other regulatory capital requirements, including supporting its Nigerian unit.
This decision aligns with Ecobank Transnational Incorporated's (ETI) "Growth, Transformation, and Returns" strategy, which aims to focus on markets where it can achieve sustainable growth and operational efficiency.
Continuity for Customers
Ecobank stated that the ownership and management change is not expected to disrupt banking operations, assets, or affect the workforce, aiming for a smooth transition that minimizes any impact on customers. Customers in Mozambique will now be served by FDH Bank Plc, which will take over the operations previously managed by Ecobank.
Implications for Telecom Sector
Similar subscriber losses have occurred in the past, such as in 2016, H1 2021, and H1 2024, due to regulatory shocks such as SIM registration rules and government enforcement of NIN-SIM linkage. However, the aggressive push into hyperscale infrastructure by Airtel highlights growing telecom competition that will benefit Africa's digital economy.
Airtel Nigeria is planning to build Nigeria's largest hyperscale data centre in Lagos's Eko Atlantic City. The data centre will deliver an unprecedented 38 MW IT load, dwarfing MTN's recently launched data centre by more than eight times. This move underscores Airtel's commitment to supporting intensive AI workloads and ensuring superior security and reliable power infrastructure.
Ecobank's Future Plans
Ecobank is focusing on countries where it can grow and make better returns. This decision to exit Mozambique is part of its strategy to be a pan-African bank, but with a focus on partners or digital channels in smaller markets.
Meanwhile, Ecobank's biggest outside investor, South Africa's Nedbank, plans to sell 21.2% of its stake in Ecobank. The sale could potentially bring in much-needed capital for Ecobank to continue its growth trajectory.
In other news, Nigerian telecom companies (MTN Nigeria and Airtel) lost 1 million internet subscribers in H1 2025, despite reporting record profit margins. The number of internet users in Nigeria dropped from 141.6 million to 140.6 million in the same period. However, Nigerians who once juggled multiple SIM cards may now be sticking with the one that gives the best data value.
In the animation industry, The Passport of Mallam Ilia, an animation project with 173,000 drawings, software like Toon Boom, and a resilient team, continues to make waves. Bridge And Value and AlexBoyo World are hosting a trade mission to Paris for Nigerian businesses looking to scale into France and the wider European market.
The cryptocurrency market also saw changes, with Bitcoin's current value at $114,557, Ether at $3,684, MemeFi at $0.005137, and Solana at $168.30. The smartphone market, however, saw a dip in sales in 2025.
- Ecobank's exit from the Mozambican market presents opportunities for fintech startups to enter and leverage cloud technology for payments, giving rise to innovative mobile-based solutions.
- The strategic decision by Ecobank to focus on fewer markets could attract more funding for pan-African projects, stimulating entrepreneurship in these regions.
- As Ecobank streamlines its operations, it might consider implementing AI-powered weather forecasting systems to optimize its agricultural financing services in the African markets it retains.
- The aggressive push into hyperscale infrastructure by telecom companies emphasizes the need for Ecobank to prioritize secure and reliable payments that can support data-intensive AI workloads in telco industries.
- The rise in cryptocurrency values offers a unique opportunity for Ecobank to explore blockchain-based solutions for cross-border transactions and improve its overall financial services offerings.
