By By Kwanele Dhladhla
The private sector has given its blessing to the long-debated conversion of the Eswatini National Provident Fund (ENPF) into a fully-fledged pension scheme, with business leaders emphasising that careful revisions have made the proposal more palatable after years of contention.
Speaking at the declaration of a record 10 per cent members’ interest for the 2024/25 financial year, ENPF Board Member and Business Eswatini Chief Executive Officer (CEO), E. Nathi Dlamini, said the idea of a national pension fund had always enjoyed broad conceptual support from employers.
“The idea of a national pension fund was supported in principle by the private sector from the very beginning, if only as a vital component of the social protection mechanisms in the country. Everyone I know was in support of the idea,” Dlamini remarked.
He explained, however, that disagreements emerged around implementation details.
“The big, and perhaps divisive, questions had to do with the ‘how’ and with the ‘what’; the ‘what’ referring to whose funds would be ‘expropriated without compensation’ – as it were – to create the pension scheme. And if that were the case, how would this be done without diluting the value of existing investment or subscribing members?” he quizzed.
According to Dlamini, another major concern was the long-term sustainability of the scheme under the proposed financial framework.
Dlamini acknowledged that reaching the current stage of broad-based support had been a “long and arduous slog” for the private sector, requiring more than five years of negotiations, revisions, and compromises.
“During this time, several tweaks were made to the calculus of the proposed scheme, and some clauses were rejigged in an attempt to address concerns from various stakeholders, not least from the private sector,” he said.
“What you see today as a draft document is a much-improved version of the original concept. It is one that has somewhat caused some encouraging convergence of minds. It’s still not entirely perfect, but it has surely been dramatically improved,” Dlamini explained.
Despite this progress, Dlamini said a key policy question remains unresolved: should Eswatini operate with a single national pension scheme or allow more than one to coexist?
“This question will fall on the laps of the relevant and competent policy makers to make. It is their judgment call to make and hopefully in consultation with all concerned parties.
And when they do, we do not doubt that they will exercise extreme wisdom and be particularly sensitive to the fears and concerns of everyone,” he stressed.
The discussion around the fund’s future came against the backdrop of impressive results. ENPF Chairman Mduduzi Gina announced on Monday that members would receive a record 10 per cent interest for the year ended June 30, 2025, the highest payout in recent history.
The announcement was made at Summerfield Botanical Gardens in Nokwane in the presence of fellow board members, including Dlamini, Khanyisile Dube-Dlamini, Tum Du Pont, Thuli Mdluli, Dudu Ndzinisa, Maureen Nkambule, and ENPF CEO Futhi Tembe.
“We are here to address and formally declare a matter of significance that reflects our commitment to transparency, accountability, and ethical governance. As stewards of this Fund, we recognise the importance of maintaining the public’s trust, and it is our duty to ensure that our stakeholders’ interests are protected,” Gina said.
The ENPF’s audited financial statements showed an operating surplus of E631.2 million in 2025, compared to E532.4 million in 2024 and E446.4 million in 2023. Revenue grew to E782.7 million in 2025, up from E682.7 million in 2024 and E595.3 million in 2023.
At the heart of this success, Gina explained, it was a robust investment strategy and disciplined cost management.
“Our obligation under the SNPF Order is to declare not less than three per cent members’ interest. This year, we are proud to have far surpassed that mandate,” he said.
The 10 per cent payout marks a 14 per cent increase from last year’s 8.65 per cent and a significant jump from the 6.5 per cent declared in 2023.
Tembe highlighted the drivers of this performance, pointing to strong returns from both local and international markets.
“The impressive results were also influenced by a strong positive performance in the stock markets. We particularly saw excellent returns from investments in the Industrial Development Corporation of Eswatini (IDCE) and Happy Valley Hotel, among other strategic holdings,” Tembe said.
Tembe added that the fund’s property portfolio had also been a standout performer, providing steady and reliable growth. “This diversification strategy has truly paid off,” she said.
Chairman Gina stressed that the ENPF belongs to its members, adding: “Our job is to ensure that it remains strong, resilient, and aligned with the needs of its members.”
As the fund celebrates record performance and growing alignment between government, employers, and workers, its transformation into a national pension scheme now appears more likely than ever.
