Pan-African banking group Ecobank announced its withdrawal from Mozambique, marking another step in its broader effort to streamline operations and focus on more profitable markets.

In a regulatory filing to the Nigerian Stock Exchange on August 5, Ecobank disclosed the sale of its entire shareholding in its Mozambican subsidiary to Malawi’s FDH Bank.

The deal includes all assets and four bank branches, and has already received necessary regulatory approvals. The transaction is expected to be completed by the end of 2025.

The bank said no major disruptions are anticipated for customers or employees during the transition.

Ecobank, which operates in 33 African countries, described the move as part of a strategy to concentrate resources on markets where it can achieve stronger returns. The Mozambican operation was considered small and had limited impact on the group’s overall performance.

“This decision aligns with our sharpened focus on core markets with significant growth potential,” the bank said in a statement.

While scaling back its physical presence in Mozambique, Ecobank emphasized that it remains committed to maintaining a pan-African footprint. In smaller or lower-return markets, the bank will increasingly rely on strategic partnerships and digital platforms to continue serving customers. In this case, FDH Bank will take over local operations, while Ecobank’s digital services will still be accessible to Mozambican users.

The move also coincides with changes among Ecobank’s major shareholders. South African lender Nedbank, the bank’s largest external investor, recently announced plans to divest its 21.2% stake in the group—a decision that mirrors a broader trend among African financial institutions toward leaner, more focused regional strategies.

Rather than pulling back from the continent, Ecobank’s recent moves signal a recalibration—choosing to consolidate in fewer, more promising markets while leveraging technology and partnerships to sustain a wide regional presence.

In an increasingly competitive and cost-sensitive banking environment, the bank appears to be picking its battles—prioritizing profitability over ubiquity.