Supporting FCB Moçambique’s commitment to financial inclusion

Founded in 2013, FCB Moçambique is a subsidiary of FMB Capital Holdings Plc, a Southern African banking group listed on the Malawi Stock Exchange. FCB ranks as the country’s 7th largest bank out of 19 in terms of total assets (with 1.9% of deposits, 2.1% of assets and 2.2% of the loan portfolio in April 2024). It has 26,000 clients and 170 employees.

Through the ultimate beneficial owner (UBO), which has privileged access to the network of Chinese and Indian companies operating in Southern Africa (in Mozambique in particular), FCB has been able to offer its banking services to the latter (including loans and foreign exchange transactions). This activity has given the bank a strong position in the corporate segment, with companies actively participating in cross-currency swaps with Mozambique, meaning that FCB Mozambique ranks in 3rd place among banks on the foreign exchange market, with a 16% market share.

The project involves the allocation of guarantees by Proparco under documentary credit operations, for which FCB Moçambique is the final beneficiary. FCB Moçambique is active in financing the country’s import sector. It has historically relied on its parent company which reallocates a portion of its confirmation limits to it. In view of its business volume and its strategy, FCB is seeking partnerships to have its own confirmation lines.

The expected impacts of this financing are as follows:

- Almost 800 jobs supported over the next 5 years in the bank and in the companies financed in Mozambique

- 23 MSMEs supported 

This financing is thus supporting economic growth and is strengthening the country’s financial infrastructure.

The project will thereby contribute to the achievement of Sustainable Development Goal (SDG) #8 (Decent work and economic growth).