King Mswati III Endorses Eswatini National Provident Fund's Conversion to National Pension Scheme

King Mswati III of Eswatini has officially endorsed the conversion of the Eswatini National Provident Fund (ENPF) into a fully-fledged National Pension Fund. This significant development, announced during the ENPF's golden jubilee celebrations on July 12, 2025, at the Mavuso Trade and Exhibition Centre, marks a pivotal moment for social security in the kingdom. The move has been met with applause from workers' representatives, including the Amalgamated Trade Union of Swaziland (ATUSWA).

A Historic Shift Towards Enhanced Retirement Security

The transformation of the ENPF, which was established in 1974 by King Sobhuza II, is designed to modernize Eswatini's social protection system. The primary objective of the new National Pension Fund is to transition from a system of once-off lump sum payments to providing retirees with a reliable monthly income. This change is intended to safeguard the dignity and financial security of the nation's workers for generations to come, preventing vulnerability when lump sum payments are exhausted.

Crucially, the new scheme will extend coverage to previously excluded groups, including informal and domestic workers, thereby creating a more equitable society. This expansion aligns Eswatini with international best practices in social security, a move praised by the International Social Security Association (ISSA) as a 'giant step forward'.

Workers' Long-Standing Demands Addressed

The endorsement by King Mswati III addresses a long-standing demand by workers. Wander Mkhonza, the Secretary General of ATUSWA, applauded the King's decision, noting that the conversion was part of the workers' twenty-seven (27) demands initially put forth by the then Swaziland Federation of Trade Unions (SFTU), now known as the Trade Union Congress of Swaziland (TUCOSWA).

Mkhonza highlighted the anticipated benefits, stating that the conversion would 'improve our lives as workers after retirement' and 'ease the Government pressure in the payment of elderly grants'. He suggested that the budget allocated for elderly grants could then be redirected to other development projects. While expressing full support, ATUSWA also indicated that there are still some concerns that need to be addressed regarding the proposed Eswatini National Pension Fund Bill.

Implementation and Future Vision

The conversion process has already seen Cabinet approval in principle, but it still requires endorsement from Parliament before it can be enacted into law. The proposed scheme is envisioned as a mandatory defined benefit pension scheme, with contributions capped at E400 per worker per month. It is designed to co-exist with existing occupational pension schemes.

King Mswati III has set an ambitious target for the ENPF, challenging it to grow its value beyond E100 billion in the next 50 years, from its current valuation of approximately E6.8 billion. Prime Minister Russell Mmiso Dlamini has also reaffirmed the government's full support, describing the reform as a 'bold but necessary step to tackle poverty' and emphasizing its role in fostering 'dignity, security, and fairness' for all Emaswati.

While the Public Service Pensions Fund (PSPF) has raised concerns about the potential impact on civil servants' existing benefits, the ENPF CEO, Futhi Tembe, has clarified that the new National Pension Fund is intended to complement, rather than compete with, existing occupational schemes, ensuring the PSPF remains intact.