Africa’s leading pension experts have thrown their weight behind the Eswatini National Provident Fund’s (ENPF) proposed conversion into a national pension scheme, hailing it as a bold and necessary reform for inclusive social protection.
This support was reinforced during the 6th Annual Africa Pension Funds and Retirement Summit, held from May 13 to 16 in Casablanca, Morocco.
The summit brought together chief executives, investment officers, fund managers and regulators from across the continent to examine transformative strategies for Africa’s retirement systems.
ENPF Chief Executive Officer Futhi Tembe was among the headline speakers at the summit, and her presentation struck a chord with participants by detailing the country’s ambitious journey to expand coverage and sustainability through its transition from a provident to a pension-based retirement model.
The summit’s agenda focused on urgent reform areas, including redefining governance in defined contribution schemes, asset reallocation amid inflation and the expansion of coverage to informal sector workers, a theme where the kingdom’s experience featured prominently.
Tembe revealed that Cabinet has already approved, in principle, the conversion of the ENPF into a national pension fund.
The move now awaits parliamentary endorsement. If passed, it would signal a decisive shift from a once-off lump sum system to a structured pension plan offering lifetime monthly income.
“This reform represents a critical step towards achieving inclusive retirement security,” Tembe told the audience.
“With nearly 59 per cent of our labour force working informally, it is essential that we establish mechanisms that protect all workers, not just those in formal employment,” she added.
The ENPF CEO was joined on the panel by Rwanda Social Security Board CEO Regis Rugemanshuro, with both countries offering insights into expanding social protection beyond the formal economy.
The dialogue formed part of the broader Summit theme recognising that informal employment remains the norm across Africa and poses structural challenges to universal pension coverage. “Locally, fewer than five per cent of informal sector workers are currently enrolled in any voluntary retirement savings scheme,” Tembe said, highlighting that as a result, most rely on basic state interventions or family support in old age. “Our proposal aims to reverse this trend by introducing compulsory contributions for informal workers and establishing a monthly pension structure that offers dignity and predictability in retirement,” she said.
Tembe emphasised that under the proposed system, all contributors including those with irregular incomes would accumulate retirement benefits calculated on a nationally defined formula, indexed to inflation, and designed to maintain purchasing power throughout retirement. In addition to policy reform, Tembe called attention to the ENPF’s embrace of digital innovation as a key enabler for expanding coverage, making it known that the fund has introduced a mobile application allowing self-registration, contribution tracking and digital payments.
“We are not relying on a top-down design. Our platforms are built around the specific needs of informal workers, user-friendly, flexible and accessible even without traditional banking infrastructure,” she explained.
According to the CEO, features such as mobile money integration and automated contribution reminders have already proven effective in encouraging consistent saving behaviour among informal contributors.
She proudly shared that countrywide outreach, in partnership with community groups and local gatherings, forms the backbone of this engagement strategy.
“We believe this is not just about money. It is about people’s futures. While a lump sum is tempting at retirement, it does not guarantee security. A pension-based model ensures financial stability for the retiree and their dependents,” she said.
“To further bolster trust, the ENPF has adopted a transparent and participatory approach, which includes annual stakeholder forums, public updates on investment performance, and ongoing member education campaigns,” she added, a message which was well-received by delegates from across the region.
Many acknowledged the relevance of the kingdom’s model to their own countries’ efforts to build inclusive pension systems.
Beyond providing secure retirement income, Tembe shone light on how ENPF’s conversion is expected to serve as a catalyst for wider economic impact.
She stated that with increased and more sustainable contributions flowing into the fund, there is potential to drive local capital market growth, enhance national savings and attract foreign direct investment.
“These are the broader economic dividends of a strong pension system. This isn’t just about protecting retirees, but about strengthening the foundations of the economy,” she said.
She emphasised that under the proposed scheme, contributions would remain mandatory and capped at E400 per worker per month, with the fund co-existing alongside occupational pension schemes.
“Members of those schemes would also be eligible to benefit from the national fund,” she added, further reiterating the importance of public understanding and stakeholder buy-in.
“We are committed to open communication throughout this process. Our members need to be fully informed of how this change will affect their savings and their future,” she said.
The ENPF CEO also called attention to the need for enhanced regional cooperation, stating that organisations like the Southern African Social Security Association (SASSA) and the Southern African Development Community (SADC) can support harmonised regulation, data-sharing and portability of benefits across borders.
Other speakers at the summit also endorsed the country’s direction, describing it as both timely and consistent with Africa’s push towards pension systems that balance adequacy, coverage and long-term financial viability.
The summit ended with a shared recognition that for African countries to deliver on the promise of decent retirement for all, reform must not only be bold, but be inclusive, transparent and tailored to the realities of their labour markets.
The proposed conversion aligns with international social protection frameworks, including the ILO Convention 102, the Universal Declaration of Human Rights (Article 22), and the United Nations Sustainable Development Goals, notably Goal 1 (No Poverty) and Goal 8 (Decent Work and Economic Growth).
