The Public Service Pensions Fund (PSPF) has announced a E3 billion profit during the 2024/25 financial year. This shows an improved performance from the E2.8 billion profit reported in the previous year.
Speaking at the Fund’s Annual Stakeholder Engagement Forum at Hilton Garden Inn, PSPF Finance Director Lawrence Nsibande stated that their assets now total E37.5 billion, with liabilities at E42.7 billion.
The Finance Director mentioned that member contributions increased from E1.3 billion to E1.4 billion this financial period, attributing this rise to the government lifting the hiring freeze. He disclosed that beneficiaries received E1.6 billion in payments over the past year.
Nsibande revealed that their offshore investments still yield the highest returns compared to their local investment portfolio. “In terms of fair value adjustment, which is the market value increase of stocks offshore and in South Africa, we achieved E884 million compared to E1.5 billion last year.”
He stated that, despite this, their strategy is to expand their local investment portfolio and aim to invest 50% of assets within the country.
“Even though the local economy does not produce the same returns as offshore and the South African market, it remains part of our strategic plan to ensure investment domestically, as that creates jobs and boosts the economy overall.”
He further clarified that, although liabilities are at E42 billion, these are projections, not losses. “The deficit of E5.1 billion does not arise from operations or net profit losses. We have not suffered any losses. However, if the Fund had to close today, the E42.7 billion would be needed to pay civil servants.”
He also emphasized that PSPF is working diligently to reduce this deficit over time. He pointed out that in April 2021, the deficit was E10.1 billion, which decreased to E7.5 billion by April 2022. Nsibande warned that if the Eswatini National Provident Fund (ENPF) proceeds with the proposed conversion as planned, the deficit could widen again, negatively affecting the PSPF.
ESASSCO Building Fully Let
The PSPF Finance Director also announced that the ESASSCO building will be completed next month and is already fully leased. The building, which was an eyesore for many years, will be 80% occupied by government employees. The remaining 20% will be open to the market.
Nsibande noted that their investment in the building aligns with their strategic aim to continue investing in the local economy.