By Miccah Nkabinde- ENPF Conversion Specialist
Welcome to ‘Likhweti’, our vital platform dedicated to ensuring every economically active person in Eswatini achieves a secure and dignified retirement.
First, I want to sincerely thank our CEO, Futhi Tembe, for allowing me to write this column. She did not just facilitate the space but recognized the opportunity and fully supports the conversation as part of her future-focused strategy of transparency, genuine dialogue, and collective participation in finding lasting solutions. ‘Likhweti’ is our safe space to speak directly to you — our members, contributors, employers, tenants, all emaSwati and visitors who care about a dignified retirement. This isn’t just my column; it’s your direct channel for conversation, feedback, critical questions, and shared ideas about the future of social security in Eswatini.
I am Miccah Nkabinde, your Conversion Specialist at the Eswatini National Provident Fund (ENPF). I am very optimistic and confident about the transformative roadmap ahead. We are on the brink of a historic shift in Eswatini’s social security system, and I am here to walk that journey with you.
Together, we will demystify the system, explore exactly how the upcoming ENPF conversion will maximize benefits, and define the crucial role this reform plays in securing a strong financial future for every contributor. Our mission is clear: to ensure the promise of a dignified retirement is fulfilled for all emaSwati. Let the conversation begin!
Why ‘Likhweti’?
The designation ‘Likhweti’ symbolises the inauguration of a robust and sustainable architecture for social security in the Kingdom of Eswatini. This appellation signifies a paradigm shift, akin to the clarity of dawn. It reflects our commitment to enhancing transparency and integrity in retirement planning, pension administration, and the forthcoming National Pension Fund (NPF). Our objective is to establish a fiscally sound and resilient system that delivers predictable benefits and fosters long-term financial security for all participants.
Why Social Security Matters
Social Security is a fundamental policy instrument designed to mitigate economic insecurity arising from key life-cycle contingencies. It functions as a collective mechanism for redistributing income and pooling risk across a population. At a technical level, the system is structured around distinct, though often complementary, pillars:
• Contributory Schemes (Social Insurance)
These are primarily defined contribution (DC) or defined benefit (DB) systems financed through mandatory contributions from employees and/or employers. Entitlement to benefits (e.g., old-age pensions, unemployment, or work injury compensation) is directly linked to an individual’s contribution history. The existing Eswatini National Provident Fund (ENPF) is a prime example of a contributory savings-based model.
• Non-Contributory Schemes (Social Assistance)
These are financed primarily through general state revenue (taxation) and are often means-tested or based on universal eligibility criteria such as age or residency. These schemes, like social pensions, guarantee a basic safety net regardless of prior employment contributions, directly targeting poverty alleviation.
The Current Socio-Economic Context and Vulnerability Assessment
Eswatini operates within a challenging economic milieu (total set of economic conditions, factors, and influences) that underscores the urgent need for comprehensive social security reform. The current landscape is characterised by severe structural vulnerabilities:
• Entrenched Poverty
Despite being classified as a lower-middle-income country, Eswatini exhibits alarmingly high poverty rates, with estimates indicating that a significant proportion of the population (59%) lives below the national poverty line. This shows a failure of current mechanisms to provide a sufficient income floor for a large segment of the populace.
• The Informal Economy Challenge
A key structural issue is the dominance of the informal sector, which accounts for an estimated up to 70% of the national workforce. Workers in this sector lack mandatory contributions and formal employment contracts, making them entirely ineligible for the protection offered by traditional provident and pension funds. This creates significant coverage gaps and shifts economic risk to individuals and households.
• Elderly Vulnerability
The current provident fund system, which requires lump-sum payments at retirement, often falls short for long-term living needs. Retirees often run out of these savings quickly, increasing old-age poverty and reliance on support, which defeats the main purpose of ensuring dignity in later years.
The Vision: A National Safety Net for All
To systematically address these systemic gaps, the Government has developed the Eswatini National Social Security Policy (NSSP). The NSSP acts as the guiding document for transforming the fragmented existing structure into a comprehensive, inclusive, and sustainable national social security system.
The policy’s long-term strategic objectives align with international best practices (such as the ILO’s Social Protection Floors Recommendation) and are focused on:
• Universalisation of Coverage
Integrating previously uncovered populations, especially those in the informal economy, into the formal protection framework.
• Benefit Adequacy
Transitioning from short-term savings payouts to reliable, periodic income streams (pensions) to combat old-age poverty.
• Systemic Cohesion
Ensuring greater coordination and progressive implementation across contributory and non-contributory elements to maximize risk pooling and solidarity across the entire citizenry.
The impending conversion of the ENPF to a National Pension Fund is the most critical initial deliverable under the NSSP framework, designed to structurally address the inadequacy of the current provision for retirement security.
Your Voice Matters
This column is just as much yours as it is mine. I want to hear from you: your questions, your ideas, and even your concerns. Together, we can ensure that the new pension system is robust, fair, and responsive to the needs of every liSwati.
Expect future editions of Likhweti to discuss:
• Migration from Lump Sum to Lifelong Income: The Provident Fund Problem
• Introduction of the ENPF Bill 2025: The Heart of the Conversion
• Broadening the Umbrella: The Mandate for Inclusion and Coverage
• Your Contributions and Benefits: What Changes for the Member
• Answer frequently asked questions
Let’s turn this into a conversation. Your participation will help us develop a system we all can trust.
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Authored by Miccah S. Nkabinde, ENPF Conversion Specialist
• Send your questions and feedback to: info@enpf.co.sz
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About the Author:
Miccah Nkabinde is a highly accomplished Senior Executive and Social Security Transformation Expert with more than three decades dedicated to Eswatini’s financial, social security, and pension fund administration. He served 26 years as General Manager Operations at the ENPF and currently leads the conversion of the Provident Fund into a National Pension Fund. Nkabinde holds an MSc in Leadership and Change and a specialist certification in Managing Social Security & Pensions from the University of Witwatersrand, supplemented by international studies in Singapore and Italy. He is a committed Christian, family man, and sports enthusiast, particularly soccer. He is also an avid farmer, with a passion for livestock rearing.