Zimbabwe’s First Capital Bank parent company, FMBcapital Holdings Plc (FMBCH), has received in-principle approval from the Bank of Mauritius to establish a new commercial bank in the island nation, marking a significant step in the regional banking group’s expansion strategy.
In a notice signed by FMBCH Group Chief Executive Officer Jaco Viljoen, the company which operates First Capital Bank in Zimbabwe alongside its banking operations in Botswana, Malawi, Mozambique and Zambia, said the proposed Mauritian bank will be formed through a 50:50 joint venture with Rogers Global Financial Holdings Ltd (RGFHL).
The group said the new institution is expected to leverage FMBCH’s regional banking expertise and the Mauritian partner’s established presence in the local economy to serve growing trade, investment and financial flows between Mauritius, Africa and other international markets.
FMBCH, a Mauritius-based banking and financial services holding company listed on the Malawi Stock Exchange, has approximately US$2.5 billion in assets through its First Capital Bank franchise, positioning it as a regional corporate and transactional banking player focused on cross-border banking services in sub-Saharan Africa.
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The company noted that the approval granted by the Bank of Mauritius does not yet permit the proposed entity to conduct banking business, as the banking licence remains subject to the fulfilment of regulatory conditions.
FMBCH said it is working to satisfy the required conditions and will provide updates to shareholders and the market as material developments occur. It also cautioned investors that there is no guarantee a final banking licence will be granted and advised shareholders to exercise caution when dealing in the company’s securities.
"Shareholders are advised that the in-principle approval does not constitute an authorisation to conduct banking business in Mauritius and there is no guarantee at this stage that a final approval will be granted by the Regulator.
"The Company is working towards satisfying the applicable conditions and will update shareholders and the market as and when there are material developments," Viljoen stated.
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