Maputo — A major Portuguese bank, the Banco Espirito Santo (BES), on Monday closed the deal to purchase 25.1 per cent of the shares in Moza Banco, one of the youngest of Mozambique's banks, set up in 2008.

According to a report in the independent daily "O Pais", BES has agreed to pay 35 million US dollars for its position in Moza Banco.

When it was set up, in mid-2008, Moza Banco had two shareholders - Mocambique Capitais (a group of 218 Mozambican investors, both businesses and individuals) held 51 per cent, and Geocapital, the holding company of the Macau billionaire Stanley Ho, owned the other 49 per cent.

After Monday's sale, the shareholding structure of Moza Banco is: Mocambique Capitais, 50.4 percent; BES, 25.1 per cent; and Geocapital, 24.5 per cent. Thus, by a slim margin, the Mozambican investors continue to be in a majority position in the bank.

The sales agreement was signed in Lisbon by BES chairperson Ricardo Salgado, the chairperson of Mocambique Capitais, Prakash Ratilal, and a representative of Geocapital, Alipio Dias.

The deal culminated negotiations that began in 2009 when Salgado visited Mozambique and met with Finance Minister Manuel Chang and the Governor of the Bank of Mozambique, Ernesto Gove.

The managing director of Moza Banco, Inaete Merali, told "O Pais" that the BES could bring technological and financial added value to the bank. Certainly, the injection of capital from BES will allow Moza Banco to continue its expansion programme.

Currently, Moza Banco only has two branches, both in Maputo, and 53 workers. Its plans include the opening of a further 15 branches in Maputo and the cities of Xai-Xai, Chimoio and Lichinga. The bank's focus is on corporate and investment banking.

Two other Portuguese banks already have a dominant position in the Mozambican financial sector. The largest Portuguese financial institution, the BCP, is the majority shareholder in Mozambique's largest commercial bank, the Millennium-BIM, while the Portuguese state bank, the Caixa Geral de Depositios (CGD) holds a majority stake in the country's second largest bank, the BCI.