Business

MBABANE - The University of Eswatini (UNESWA) has taken a significant step towards strengthening its long-term financial sustainability.

This follows the signing of a landmark Investment Policy Memorandum of Agreement (MoA) between the UNESWA Endowment Fund and Independent Actuaries and Consultants (IAC).

The agreement signals a strategic shift by the country’s largest tertiary institution to adopt a more sophisticated and investment-driven model to support its operations and development, while also opening the door for institutional and private investors to participate in projects aimed at national development.

The move comes at a time when higher education institutions globally are increasingly exploring alternative financing models to ensure sustainability, amid tightening public budgets and growing demand for research, innovation and infrastructure development.

According to the UNESWA Endowment Fund, the new partnership lays the foundation for a structured investment framework that will guide how the fund mobilises and manages capital for long-term impact.The establishment of the UNESWA Endowment Fund represents a major shift from the former UNESWA Foundation model, marking a transition from a traditional donor-focused structure to a more commercially oriented investment vehicle.

UNESWA Endowment Fund Chief Executive Officer Vulindlela Simelane said the transformation is designed to ensure the university builds a resilient financial base that can support its academic mission for generations.

“Our philosophy is to leverage innovative and blended finance techniques to create multiple income streams while avoiding the risks of relying on a single funding source,” Simelane said. He noted that the agreement with Independent Actuaries and Consultants provides the technical expertise required to guide the fund’s investment strategy and governance framework.“This agreement is about building a sustainable institution that will continue to serve the nation long after we are gone,” he added.

Through the partnership, IAC will assist in developing a comprehensive investment policy that governs critical areas such as asset allocation, risk management, governance structures and long-term investment planning.

The objective is to ensure that every Lilangeni invested in the UNESWA Endowment Fund is managed with strong fiduciary oversight and aligned with global best practices in institutional investment management.

Unlike conventional fundraising initiatives that rely on continuous donations, endowment funds operate on a long-term investment model designed to preserve capital while generating income.

Under this structure, the principal capital remains intact, while only the investment returns are used to support the institution’s programmes and development initiatives.

This approach, often described as “investing in perpetuity,” ensures that the financial contributions made today continue generating value for future generations of students, researchers and the wider national economy.

*Full article available on Pressreader*

UNESWA Endowment Fund Chief Executive Officer Vulindlela Simelane. (Courtesy pic)