While some other parastatals struggle financially, the Industrial Development Company of Eswatini (IDCE) has announced a dividend payment of E14.5 million for the financial year ending June 30.
This payout marks a successful recovery for the company, which has seen its finances improve steadily since 2023, according to Board Chairman Dumisani Kunene.
Kunene explained that the decision comes at a time when the organisation is celebrating a period of strong growth and stability.
The total payment of E14 566 879.50 is more than just a financial move; it shows that the company is running efficiently and keeping its promises to shareholders, according to Kunene.
As part of this payout, the Eswatini National Provident Fund (ENPF) will receive the largest share of over E9 million.
Government will receive over E5 million, while Nedbank Eswatini and Standard Bank will each receive approximately E225 000.
These payments help support national savings and government projects.
Kunene thanked the IDCE team and the shareholders for their hard work and trust.
“This declaration is a testament to the hard work and dedication of the IDCE team,” he said.
He added that the team’s effort and the confidence of shareholders have been the main reasons for the company’s success over the last three years. He said the board was very pleased with these results, as they show that the company was now more profitable and financially secure.
The company’s growth is clear from its numbers. In just two years, the group’s total assets grew from E1.1 billion to E1.8 billion.
This was made possible by careful money management and a plan that saw E300 million given out in loans and investments since 2023, according to Kunene, who further noted that these investments had earned the group a net income of E103 million this year.
Beyond making a profit, the IDCE is helping the local economy by putting money into farming and manufacturing, which in turn helped create jobs.
ALSO READ | MPs push to stop gambling licences as addiction and underage gambling fears grow
It has also built factory buildings at the Matsapha Industrial site. These buildings have attracted companies moving from South Africa, which brings more business and investment into Eswatini.
When deciding on the dividend, the board made sure the company still has enough cash for its future needs.
“The proposed dividend seeks to reward shareholders and is considered appropriate and sustainable,” the chairman explained.
He noted that while they are paying out profits now, they are also keeping enough money to fund new projects in the future.
The board finished by thanking the staff and shareholders for their support and promised to keep managing the company responsibly.
Breakdown of dividends
| Organisation | Amount (E) |
|---|---|
| ENPF | 9 091 124.39 |
| Government | 5 024 181.85 |
| Standard Bank | 225 786.63 |
| Nedbank | 225 786.63 |
| Total | 14 566 879.50 |
Govt applauds IDCE’s financial turnaround, industrial impact
Government has formally celebrated the Industrial Development Company of Eswatini’s (IDCE) return to profitability and its subsequent declaration of dividends.
The occasion featured key addresses from the Minister of Commerce, Industry and Trade, Manqoba Khumalo, as well as the Minister of Finance, Neal Rijkenberg, both of whom praised the institution for successfully balancing its developmental mandate with commercial viability.
This milestone marks a decisive shift for the IDCE, signaling that the company has moved past its recovery phase and is now firmly positioned on a trajectory of sustainable growth and economic relevance.
The Minister of Commerce highlighted the IDCE’s critical role in the nation’s industrialisation strategy, particularly through the revitalisation of factory shells.
“Of particular note is IDCE’s contribution to employment creation through the revitalisation of factory shells and the successful attraction of companies, including those relocating from South Africa. These investments have created meaningful jobs for our people and advanced government’s industrial development objectives,” he said.
The minister emphasised that these efforts are vital for deepening local value addition and reducing Eswatini’s dependency on foreign goods.
Looking forward, the ministry expects the IDCE to further sharpen its focus on export-driven manufacturing, which remains a cornerstone of the country’s economic transformation agenda.
“IDCE is expected to further strengthen its drive towards industrialisation, manufacturing and export substitution. These areas are critical for deepening local value addition, reducing import dependency, and growing sustainable exports,” he said.
Adding to the sentiment of stability, the Minister of Finance noted that the IDCE’s turnaround is a compelling success story of disciplined governance.
“The company’s strong financial turnaround, culminating in the ability to declare dividends, reflects disciplined governance, prudent financial management, and the collective efforts of a winning and highly committed team. Importantly, this achievement has been realised without the need for additional capital injections from shareholders, a testament to the institution’s growing self-sufficiency and operational maturity,” said Rijkenberg.
A point of particular significance was the fact that the company achieved this level of self-sufficiency without requiring additional capital injections from shareholders.
“This declaration is more than a financial milestone; it is a clear and powerful signal that IDCE has turned a decisive corner and has firmly positioned itself on a path of sustainable growth, resilience, and relevance to the national development agenda,” said Rijkenberg.
By generating a surplus while simultaneously contributing to national revenue through taxes and value-added tax, the IDCE has proven that public enterprises can deliver meaningful developmental impact without sacrificing financial discipline, according to Rijkenberg.
The minister commended the board and management for their stewardship, which has restored both fiscal health and public confidence in the institution.
In closing, government reaffirmed its unwavering support for the IDCE as a primary driver of the Kingdom’s development journey.
