MBABANE – The Eswatini National Provident Fund (ENPF) recorded strong financial growth during the third quarter of the 2025/26 financial year ended December 2025.
The fund’s total income rising to E451.9 million was largely driven by improved investment performance and prudent financial management.
The performance, captured in the Ministry of Labour and Social Security’s annual report, highlights the fund’s solid financial position and continued focus on safeguarding members’ contributions while supporting national development through strategic investments.
According to the report, the E451.9 million income represents a significant increase of E189.7 million compared to the same period in the previous year.
The growth was primarily attributed to stronger investment returns across the fund’s diversified portfolio.
The fund stated that throughout the reporting period it maintained prudent financial management practices by closely monitoring operational costs and ensuring expenditure remained aligned with its strategic objectives.
“This performance demonstrates solid income growth and the fund’s continued commitment to long-term financial sustainability through disciplined expense management,” the report noted.
Investment income emerged as the largest contributor to the fund’s financial performance during the quarter.
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Property income slightly underperforms
MBABANE - While investment returns exceeded expectations, rental income from the fund’s property portfolio slightly underperformed against budget.
Rental income for the quarter amounted to E15.1 million compared to the budgeted E16 million.
The shortfall was attributed to higher-than-expected vacancies in some properties as well as prolonged lease renewal cycles.
Despite this, the fund indicated that it continues to prioritise proactive property maintenance as part of its strategy to sustain long-term value within its real estate investments.
Maintaining properties in good condition, the fund noted, is critical in ensuring high occupancy levels while also attracting potential tenants.“The proactive maintenance of properties is essential to maintain high occupancy rates and attract new demand to the fund’s investment properties,” the report stated. Another key highlight during the quarter was effective expense management.The fund reported that operational expenses were E3.3 million below budget, reflecting strong cost containment measures and careful financial oversight.ENPF noted that it remained vigilant in managing expenditure to ensure that resources are allocated efficiently while supporting initiatives that benefit members.Through disciplined financial stewardship, the fund aims to maximise returns while reducing unnecessary operational costs.This approach contributed to the fund recording a substantial operating surplus of E173.5 million during the quarter.The surplus significantly exceeded the budgeted figure of E101.9 million.The report attributed the strong surplus to a combination of robust investment returns and prudent expense management.Beyond income growth, the report also highlights the fund’s strong financial stability and ability to meet its long-term obligations to members.
The ENPF maintained a funding level of 1.07 during the reporting period.A funding level above one indicates that the fund’s assets exceed its liabilities, meaning it is fully funded and capable of meeting future benefit obligations.
The report noted that maintaining this level reflects sound actuarial assumptions and prudent financial management.“This position ensures the security of members’ benefits now and into the future,” the report stated.The fund also reported a strong liquidity position, with a current ratio of 4.05.This ratio indicates that the fund has more than sufficient current assets to cover short-term obligations, providing additional financial resilience.
Maintaining such strong financial and liquidity indicators, the fund noted, reinforces its commitment to protecting members’ interests while ensuring long-term sustainability.
The ENPF continues to play a significant role in supporting the domestic economy through its investment activities.
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Member benefits decline slightly
MBABANE - Despite the increase in contributions, the total amount paid in member benefits declined during the quarter.
The fund paid E63.3 million in benefits compared to E69.8 million in the previous quarter, representing a nine per cent decrease.This was largely due to a lower number of claims processed during the reporting period.A total of 3 430 claims were processed during the quarter compared to 3 903 in the previous quarter.
However, the fund expects claims to increase in the next reporting period, which is consistent with historical trends, where benefits paid often exceed contributions received.
The ENPF continued improving service delivery, particularly in claims processing.
During the quarter, the average number of days taken to process member claims improved to 1.38 days.
This represents a slight improvement from the 1.42 days recorded in the previous quarter and remains well within the fund’s target of 2.5 days.The fund indicated that further process efficiencies are being implemented to ensure faster and more seamless claims processing.Employer compliance recorded a slight decline during the reporting period.The compliance rate stood at 87.61 per cent compared to 88.74 per cent in the previous quarter.
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Eswatini National Provident Fund CEO Futhi Tembe. (File pic)