Manzini – A monumental shift is underway at the Eswatini National Provident Fund (ENPF) that promises to reshape the future of social security for the nation. The Fund, which has served as a cornerstone of Eswatini’s social security system for nearly five decades, is now embarking on a transformative journey. It is converting from a provident fund to a national pension fund, a change designed to offer inclusive and sustainable benefits to all economically active workers in the kingdom.
This conversion is a progressive step aimed at creating a more equitable society. The new pension system will not only include employees in the formal sector but also extend to workers in the informal economy and domestic workers who have long been excluded from such systems. This broadens the Fund’s scope, marking a pivotal moment for social security in Eswatini.
One of the key highlights of the conversion is the shift from the lump-sum payments offered under the provident fund to monthly pensions for retirees. Currently, when workers retire, they are provided with a lump sum, which can quickly run out, leaving them vulnerable to financial insecurity. With the new pension system, however, retirees will receive consistent monthly payments, ensuring they have a steady source of income to support them throughout their retirement years. This shift addresses the issue of income security, a challenge that many retirees face after leaving the workforce.
The implications for poverty alleviation are profound. By ensuring a guaranteed income in retirement, the national pension fund will help prevent the elderly from falling into poverty, offering them dignity and security during their later years. This approach provides much-needed stability for the country’s most vulnerable populations, ensuring that no one is left behind.
Beyond individual benefits, the conversion is expected to have a significant impact on the economy. The pension fund will enable more long-term investments, which could lead to job creation and further economic growth. By investing pension funds locally, Eswatini can stimulate new business opportunities and attract foreign direct investment (FDI). This, in turn, will strengthen investor confidence in Eswatini’s economy, making the country a more attractive destination for investment.
The shift aligns Eswatini with international best practices in social security. Many African nations have already made the transition from provident funds to pension schemes, and Eswatini has now recognized the need to follow suit. The change will make the Fund more sustainable, ensuring that workers’ retirement savings grow over time and are protected against inflation.
As the Fund celebrates its 50th anniversary, this conversion marks a key milestone in its journey toward becoming a world-class social security system. By adapting to global standards and embracing a more inclusive approach, the ENPF is setting a new course for Eswatini’s future, a future where every worker has access to a secure and dignified retirement.
