BPI to Sell Stakes in Mozambique and Angola, Repatriating €200M

The Portugal-based lender Banco BPI has declared its participations in Mozambique and Angola as non-strategic, a move that will free up capital and curb exposure to frontier-market volatility for Portuguese investors.

Why This Matters

• Repatriation of funds: Up to €200 M could return to Portugal’s financial system.

• Risk reduction: Limits impact of Mozambique’s selective-default sovereign status on domestic portfolios.

• State oversight: Any sale needs prior sign-off from Caixa Geral de Depósitos (CGD), safeguarding taxpayer interests.

• Client continuity: Around 9,000 Portuguese customers in Maputo will see branch operations maintained.

Strategic Realignment: Exiting Mozambique and Angola

During the presentation of 2025 results in Lisbon, CEO João Pedro Oliveira e Costa emphasised that stakes in BFA Angola and BCI Moçambique simply no longer fit BPI’s core agenda. By calling these assets “non-strategic,” he signalled an open invitation to buyers. The intent is clear: pivot resources toward higher-growth, lower-risk markets in Portugal and Western Europe.

A Detailed Look at the Numbers

Group profits for 2025 stood at €512 M, down 13% from the previous year. The Angolan affiliate BFA still contributed a positive €43 M, up from €39 M in 2024. In contrast, the Mozambican operation BCI dragged results by €20 M, a reversal from €38 M of profit in the prior year, driven by a surge in loan-loss provisions after Maputo’s debt rating slid into selective default.

Navigating the Shareholder Pact

BPI holds 35.67% of BCI Moçambique, while CGD retains over 60% and must give formal approval to any transaction. Insiders suggest potential suitors could include Bank of Kigali, Access Bank, or a development-finance institution keen on emerging markets. BPI has committed to honouring its agreement with CGD, promising prior notification before finalising any deal.

Governance and the Human Toll

The divestment drive is unfolding under a somber shadow: the January death of Pedro Ferraz Reis, BCI’s financial director. Mozambican investigators, with support from Portugal’s Serviço Nacional de Investigação Criminal, concluded the tragedy was a suicide. BPI’s CEO described himself as "completely shocked," recalling Reis’s “exceptional intellectual and personal qualities” developed over two decades of collaboration. Oliveira e Costa also extended gratitude to both the Portuguese Government and the President of Mozambique for their support during the investigation.

What This Means for Residents

Portuguese savers and small businesses may welcome a steadier bank share performance once BPI exits these high-risk markets. Retail investors holding BPI stock should see reduced earnings swings tied to African debt crises. CGD, as a state-backed institution, stands to manage any remaining Mozambican exposure, potentially drawing on its strong domestic deposit base rather than tapping taxpayer funds. Importantly, SWIFT corridors and branch networks in Maputo will remain operative throughout the sale process, ensuring that both remittance flows and everyday banking services for Portuguese expatriates stay uninterrupted.

Looking Ahead: A Leaner, Stronger Home Market

This strategic retreat mirrors a broader trend among European banks trimming non-core assets to bolster Basel IV compliance and enhance return on equity. For BPI and its customers in Portugal, the freed-up capital may accelerate investment in digital banking platforms, green financing initiatives, and competitive mortgage offerings. By swapping frontier-market headaches for a more robust balance sheet at home, Portuguese banking is set to emerge with greater stability and innovation potential by 2027.