By Phiwa Sikhondze
The highly anticipated transition of the Eswatini National Provident Fund (ENPF) into a pension fund dominated discussions at the 6th ENPF Stakeholder Forum, held at the Happy Valley Hotel in Ezulwini on Thursday.
The forum, attended by key stakeholders, marked a significant step in reshaping Eswatini’s social security landscape.
Delivering his remarks, the Minister of Labour & Social Security, Phila Buthelezi, underscored the importance of this transformation, noting that the pension fund model would provide emaSwati with a robust financial safety net upon retirement.
He revealed that the conversion bill is currently before Cabinet and efforts are underway to expedite its submission to Parliament.
“This is a not competition with existing occupational pension funds,” the Minister said. “Instead, it is about complementing these funds to ensure comprehensive financial security for all. Together, we can address the gaps in our current system.”
The forum’s discussions highlighted the limitations of the current provident fund model, often referred to as “phuza uphume” (consume and exit), and the need for a more sustainable system. ENPF Board Chairman, Mduduzi Giina, noted that the transition to a pension fund has faced resistance but remains a critical step forward.
“Each day we delay the conversion, we risk depriving more members of the long-term benefits that a pension fund offers,” he said.
Ndumiso Mavimbela, a consultant from Manala Actuaries, provided a detailed analysis of the proposed shift, explaining how the pension model ensures lifelong financial security for members.
International insights were shared by guest speaker Yollard Kachinda from Zambia, who outlined his country’s experience with a similar transition. Kachinda shared that a similar transition in Zambia has affected the livelihoods of the nation and the economy as a whole.
In her welcome remarks, ENPF CEO, Futhi Tembe, emphasized the importance of member education and stakeholder collaboration in the transition process. She pledged the Fund’s commitment to transparency and accountability, urging stakeholders to engage actively in shaping the future of social security in Eswatini.
“This transition is not just about structural changes; it’s about ensuring a secure and dignified retirement for all emaSwati,” Tembe said.
The forum concluded with a call for collective action and shared responsibility in implementing the pension fund model. Stakeholders were encouraged to provide feedback and engage in discussions to address concerns and ensure a smooth transition.
The ENPF’s transformation into a pension fund marks a new chapter in Eswatini’s social security system, promising greater financial security for current and future generations. As the conversion bill moves closer to realization, the Fund remains committed to building trust and delivering value to its members.