The Public Service Pensions Fund (PSPF) is reaping the rewards of its bold investment strategy, with Montigny Investments and the Hilton Garden Inn now delivering consistent dividends and proving the value of patience in long-term investing.
During this year’s PSPF Stakeholder Engagement Forum held last week, PSPF Director of Investments – Musa Hlatshwayo – reflected on the journey that began over a decade ago when the Fund took a risk many thought unwise. In 2014, PSPF injected E700 million into the then-defunct Sappi Usuthu mill, backing Montigny to revive Eswatini’s forestry sector.
“At the time, there was a lot of doubt and questioning. People asked: ‘What are you doing? When will this give a return?’ For three to four years, there was nothing,” Hlatshwayo recalled. “But we had structured the investment so that even without dividends, interest was accumulating.”
That patience has paid off. Today, Montigny has more than doubled in value. The Fund has started receiving its dividend. According to Hlatshwayo, the Fund received its dividend last year, but this year’s payout has already surpassed it, indicating that there is an improvement in the performance of the investment.
“If we were to sell our equity stake now, we would get double our investment,” said Hlatshwayo, noting that the growth secures PSPF’s ability to channel profits into new ventures that create more jobs for emaSwati.
Montigny’s turnaround is especially significant given its scale. The forestry company is one of Eswatini’s largest private employers and a major player in the export economy, turning timber into a sustainable driver of national growth. For PSPF, this makes the investment both financially and socially valuable.
The story of Hilton Garden Inn follows a similar trajectory. Opened as Eswatini’s first internationally branded hotel, the hotel initially struggled to generate returns, leading to early concerns about its viability. Yet, with persistence, the tide has turned.
“Today, Hilton is paying us dividends consistently, and we’re happy about it,” Hlatshwayo said. “It is no longer just a hotel, it’s an anchor for tourism and business travel, and a source of jobs for our people.”
Both ventures demonstrate PSPF’s philosophy of investing not only for profit but also for the nation’s broader development. “We are intentional as a Pensions fund that the economy is on our shoulders,” Hlatshwayo stressed. “We must do all we can to assist the government in creating jobs.”
With its track record now clear, PSPF is already scouting for new opportunities to expand its portfolio. The Fund’s strategy blends cautious structuring with a willingness to take risks where others hesitate, an approach that has begun to reshape the investment landscape in Eswatini.