By Own Correspondent
His Excellency the Right Honourable Prime Minister Russell Mmiso Dlamini has reaffirmed His Majesty’s Government’s full support for the Eswatini National Provident Fund (ENPF) as it undertakes a historic transformation into a National Pension Scheme that will secure retirement income for every economically active liSwati.
The Prime Minister was speaking during his tour of the ENPF stand at the Eswatini International Trade Fair in Manzini yesterday, where he was accompanied by Deputy Prime Minister Hon. Thuli Dladla, the Minister of Labour and Social Security Hon. Phila Buthelezi, their cabinet colleagues, and other dignitaries. Welcoming the delegation were ENPF Chief Executive Officer Futhie Tembe, General Manager Corporate Services Sindi Mango, and staff members.
A Reform Anchored in Social Protection
Addressing the ENPF team and guests, the Prime Minister described the conversion as a bold but necessary step to tackle poverty and transform Eswatini’s social protection landscape.
“This reform is not just about pensions; it is about poverty alleviation and strengthening hope for the nation,” Dlamini declared. “For the first time in our history, all economically active emaSwati, including those in the informal sector, will be guaranteed a monthly pension until the end of their lives. This is about dignity, security, and fairness.”
He added that there will also be a survivor’s benefit for spouses and children of the member in the event of his or her demise.
He went on to praise ENPF’s management and institutional governance.
“ENPF has proven itself as a well-governed institution with a solid business model, and this bold transition is a testament to its commitment to securing the future of emaSwati. The Fund has served this nation with integrity for five decades, and now it is leading us into a new era of social protection.”
The Prime Minister’s endorsement follows Cabinet’s approval of the Eswatini National Provident Fund Bill, 2025, which is currently before Parliament. When passed into an Act, the Bill will establish a mandatory defined benefit pension scheme covering both formal and informal sector workers, ending decades of exclusion for nearly 60 per cent of Eswatini’s workforce employed outside the formal economy.
CEO Expresses Gratitude
ENPF CEO Futhie Tembe expressed deep gratitude for the government’s support, describing the reform as a milestone in rewriting Eswatini’s social contract.
“We are truly grateful to His Majesty’s Government, the Prime Minister, and Cabinet for their unwavering support of this reform,” Tembe said. “The ENPF will continue to be transparent and accountable, ensuring that the conversion process is handled efficiently and always in the best interests of our members and the nation.”
Tembe explained that the conversion addresses one of the most pressing vulnerabilities in the current provident fund model. At present, retirees receive a once-off lump sum that often runs out within a few years, forcing many back into poverty. The new pension model, she said, guarantees lifelong monthly income indexed to inflation, with survivor benefits for spouses and children.
“This reform is about protecting livelihoods, reducing poverty, and securing a dignified future for every liSwati,” she emphasised. “With the trust of our members and the full support of government, ENPF will deliver a pension system that benefits current and future generations.”
Why the Reform Matters
According to the 2024 Integrated Labour Force Survey, 59 per cent of Eswatini’s 260,356 employed people work in the informal sector, generating over E20.5 billion in annual transactions. Yet the vast majority have no access to retirement savings.
The reform, therefore, represents a major leap towards universal coverage. It introduces:
• Guaranteed lifelong pensions instead of one-off payouts.
• Risk pooling to cushion members from poor investment returns.
• Compulsory spouse pensions to safeguard surviving partners.
• Benefit portability across employers and sectors.
• Coverage for the informal sector and self-employed contributors.
Miccah Nkabinde, ENPF General Manager Operations, explained that membership will initially be open to those aged 45 and below, with options for older workers to ‘buy’ past years of contributions. This ensures the scheme starts on a fully funded basis, underpinned by actuarial prudence.
Coexistence with PSPF
A point of public debate has been the inclusion of civil servants currently covered by the other occupational pension funds. Tembe clarified that the ENPF does not intend to dismantle them. Instead, the schemes will coexist: current civil servants remain under the occupational pension funds, while only new entrants join the ENPF, with voluntary opt-in for existing members.
Actuarial studies indicate no negative impact on the occupational pension fund’s benefits. In fact, pooling contributions across schemes could enhance economies of scale, reduce administrative costs, and strengthen funding for minimum pensions.
“The Bill is designed to protect what already exists while building a stronger, more inclusive system for future generations,” Tembe assured.
Visitors at the Stand Voice Support
The Prime Minister’s tour also drew a crowd of citizens and trade fair attendees, many of whom voiced strong support for the proposed conversion.
“As a market trader, I’ve never had any retirement plan. Knowing that I will now receive a pension when I grow old gives me peace of mind,” said Nomcebo Dlamini, a 36-year-old informal trader from Manzini. “This reform is a blessing for us in the informal sector who always felt excluded.”
“I work in construction, and jobs are not always steady. To know that I’ll still have income after retirement is something I never thought possible,” remarked Bongani Mamba, 41. “It shows the government really cares about ordinary workers like me.”
“I’m a young professional in finance, and I welcome this reform because it aligns Eswatini with international best practices,” said Thandeka Simelane, 29. “We need a modern pension system that gives people confidence to invest and save for the future.”
“This is the kind of reform that makes me proud to be liSwati,” added Sipho Kunene, 45, a teacher. “It’s about giving dignity to our parents and grandparents, and ensuring future generations will not struggle when they retire.”
A National Economic Boost
Beyond individual security, the reform is expected to stimulate the broader economy. A larger, unified pension fund can:
• Invest in large-scale infrastructure projects.
• Support public debt management through government bond purchases.
• Enhance economic resilience by retaining more capital domestically.
• Improve data alignment across social security systems to reduce fraud.
“The National Pension Scheme will not only reduce poverty in old age but will also strengthen our financial markets and national development,” Tembe said. “It is a reform with both social and economic dividends.”
Government Confidence in ENPF
While the government has formally backed the Bill, it has clarified it will not act as a guarantor of the scheme. Tembe stressed that this does not signal any risk, but rather confidence in ENPF’s proven ability to manage funds independently.
“ENPF has a long-standing record of investing prudently across diverse sectors, including hospitality, retail, and property,” she said. “These investments safeguard members’ funds while also contributing to Eswatini’s economic development.”
Observers have echoed this sentiment, emphasising the Fund’s track record:
“ENPF has for over 50 years, been a trusted steward of members’ savings. They have every confidence that it will successfully manage this transition and deliver a pension scheme worthy of emaSwati.”
A Turning Point for Eswatini
The ENPF’s transformation into a National Pension Scheme represents more than a technical adjustment in retirement savings — it is a profound social reform. It extends dignity to workers who have long laboured without a safety net, reduces poverty risks in old age, and strengthens the nation’s economic foundation.
As Tembe concluded at the Trade Fair: “This is an opportunity to rewrite Eswatini’s social contract — one where decades of work are rewarded with stability, dignity, and pride. Together, with government and citizens united, we are building a stronger future for all emaSwati.”