Special Report
The national conversation around the proposed conversion of the Eswatini National Provident Fund (ENPF) into a National Pension Fund has gained momentum, with different views emerging in the media and public forums.
While much has been said about what this reform means for workers, civil servants, and the economy at large, the Public Service Pensions Fund (PSPF) believes the most important principle is that discussions must remain rooted in balanced facts, fairness, and transparency, not unfounded contradictions. That the discussions must also be grounded on professionalism and mutual respect of all stakeholders, values which drive us at PSPF. Our values are Buntfu, Innovation, Transparency, and Excellence.
As the country’s largest pension fund, the PSPF has taken note of various contradicting reports suggesting that the Fund and civil servants have little to worry about from the conversion process, and in some cases, questioning the accuracy of statements made by the Fund. PSPF still maintains that civil servants will be worse off despite later headlines suggesting otherwise.
PSPF respects the diversity of views but wishes to remind all stakeholders that the Fund is best placed to communicate its position, given its mandate, its legislation, and its responsibility to more than 40 000 active members and 12 000 pensioners. And it is from the Fund that the members can get updated and accurate information, not from second-hand or third-hand sources, unless acknowledged by the PSPF. This excludes the Government and our parent Ministry of Public Service under which the PSPF operates, and its stakeholders, which include public sector associations that have regular consultations with the Fund.
“We recognise that this is a moment of change for Eswatini’s retirement system,” said Elkan Makhanya, Director Corporate Services. “Reforms of this nature can be debated openly, but those debates must be guided by facts and by a commitment to protect the interests of all members. As PSPF, we are committed to presenting our analysis clearly, responsibly, and in line with our legislative mandate and to the relevant stakeholders.”
A Legacy of Service and Stability
Established under the Public Service Pensions Order of 1993, PSPF exists to provide retirement and related benefits to public servants. Over the past three decades, the Fund has consistently delivered on this mandate, paying out more than E16.3 billion in benefits and securing the livelihoods of tens of thousands of families.
PSPF today manages more than E37 billion in assets, with nearly half invested locally. These investments are not abstract numbers; they are tangible contributions to Eswatini’s development. From infrastructure like the Sicunusa–Gege road, to commercial hubs such as Buhleni Plaza and Woodlands Shopping Complex, to health facilities like the Oncology Cancer Centre, PSPF has been instrumental in shaping the country’s socio-economic landscape.
Through its investee companies and projects, the Fund has helped create more than 20,000 direct jobs in the last five years. This dual role, providing retirement security for civil servants while driving economic growth, underscores the significance of ensuring that PSPF’s mandate remains stable and undisturbed.
PSPF POSITION: DO NOT REDUCE CIVIL SERVANTS’ PSPF CONTRIBUTIONS
The ENPF 2025 Bill, tabled in Parliament by the Minister of Labour and Social Security, proposes converting ENPF from a provident fund into a pension fund. This is widely seen as a positive step for ENPF members, who will move from receiving lump sums at retirement to enjoying lifelong pensions. PSPF has consistently supported this principle, noting that it strengthens social security for a large portion of the workforce.
“We propose that the PSPF only supports the conversion without the inclusion of civil servants. If civil servants are included, it would be on condition that it is an additional contribution without reducing PSPF contributions for the new civil servants. The PSPF Order must be adhered to in full,” the PSPF states.
However, the Fund has also outlined other areas of concern. Chief among these is the potential duplication or overlap that could occur if civil servants, who are already covered under PSPF, are brought under the new scheme. Civil servants were deliberately excluded from ENPF when it was first established in 1974, precisely because they had their own statutory pension arrangement. Reversing this design without careful planning could undermine both systems.
“Our position has always been that the National Pension Fund should complement, not compete with, existing schemes,” PSPF explained. “This means broadening coverage to workers in the private and informal sectors, rather than duplicating arrangements for civil servants whose pensions are already secured through PSPF.”
Respecting Due Process
One of the Fund’s strongest commitments is to the processes of governance. Pension reform of this scale can only succeed if it is implemented through transparent, inclusive, and lawful mechanisms. PSPF respects Parliament’s role in debating the ENPF 2025 Bill and trusts that legislators will carefully weigh the technical, financial, and legal implications raised by stakeholders. PSPF also fully respects the government’s role in the conversion.
“Ultimately, the processes of Parliament and government will determine the way forward, and we believe these processes will give due diligence to the concerns raised,” the Fund states.
Fact-based discussions
PSPF is particularly concerned that in the midst of unbalanced debate, some narratives may inadvertently misinform the public or undermine confidence in established institutions. As a legislated entity with clear reporting lines and governance frameworks, PSPF emphasizes that its communications are grounded in empirical evidence and in its statutory responsibilities.
It is for this reason that the Fund encourages members and the public to seek updates or clarifications and verifications of information directly from official sources. The Fund’s website (www.pspf.co.sz) and its official social media platforms are the most reliable channels for accurate, up-to-date information.
“Healthy debate is welcome,” PSPF added, “but it must be based on verified information. This ensures that the public, especially our members, can trust that their pensions are secure and that reforms will not be implemented without proper safeguards.”
PSPF, ENPF not in conflict or fight
PSPF wishes to clarify that there is no conflict or fight with the Eswatini National Provident Fund. ENPF is a key player in social security in Eswatini, which PSPF respects for its role in the economy, hence it welcomes the conversion without civil servants. At the heart of PSPF’s perspective is a constructive vision for reform: one in which the National Pension Fund expands social protection for the uncovered while PSPF continues its dedicated role for civil servants.
Such an arrangement would:
• Preserve PSPF’s independence and mandate, ensuring continuity for public servants.
• Extend social protection to new groups, particularly the private sector and informal workers, thereby fulfilling the larger goal of universal retirement security.
• Ensure transparency and gradual implementation, protecting accrued benefits and preventing financial instability.
This vision aligns with international best practices, where multiple pension funds co-exist and complement one another, each serving distinct sectors of the population.
Reassuring Members
For the thousands of civil servants who rely on PSPF for their retirement, the Fund’s message is clear: your pensions remain secure under the current statutory arrangement. Any changes to this arrangement would have to be carefully legislated, financially sound, and transparent.
PSPF has no intention of misleading its members or the public. Its responsibility is to ensure that every concern is voiced and addressed before reforms are implemented. This is not a matter of institutional pride; it is a matter of protecting livelihoods and upholding the trust that members have placed in the Fund for more than 30 years.
As the ENPF 2025 Bill moves through parliamentary debate, PSPF will continue to engage constructively with stakeholders. Its focus remains on ensuring that reforms expand retirement security without eroding the foundations of existing, well-functioning funds.
The proposed conversion of ENPF into a National Pension Fund is a historic moment for Eswatini’s pension system. With it comes the opportunity to expand retirement security across the workforce. But with that opportunity comes responsibility, the responsibility to protect what already works while building what is new.