Former senator and Mbabane businessman Walter Bennett says the proposed conversion of the Eswatini National Provident Fund (ENPF) into a National Pension Fund lacks sufficient consultation with the public and the wider business community.
Bennett contends that while ENPF and government have framed the conversion as a landmark reform aimed at extending retirement security to more citizens, the very people who will be directly affected have not been given an opportunity to interrogate the proposal or its financial underpinnings.
Lack of Public Engagement
Speaking in a wide-ranging critique, Bennett maintained that the fund had spoken extensively through the media, in Parliament, and at closed-door forums with selected stakeholders, but failed to open genuine dialogue with the ordinary Liswati.
“The conversion is being marketed to us through press statements and speeches, but not through proper public hearings where people can ask questions and get clear answers,” he said.
He further argued that institutions like ESERA and EEC hold consultations before increasing electricity tariffs, yet on a matter as critical as pensions, there has been no such exercise.
Transparency Concerns
Bennett stressed that ENPF must demonstrate greater transparency in its current investment portfolio before pressing ahead with the conversion.
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He questioned whether members and the broader public had been given sufficient information about how the fund’s existing E6.3 billion in assets were managed, and what returns had been achieved.
“Whenever ENPF executives speak about investments, they refer to landmark buildings such as Sivuno House, but the question is not whether the buildings are tall or beautiful — it is what returns those investments are generating,” he said.
Bennett added that the fund must present audited returns, credible projections, and clear financial performance figures to justify the conversion.
Regulatory Framework Issues
The businessman also raised concerns about the regulatory framework that would govern the National Pension Fund, questioning whether Eswatini had adequate custodial and oversight mechanisms.
He pointed to models in Botswana, Ghana, and Zimbabwe where pension funds are legally required to appoint independent custodians to safeguard members’ assets.
“Given the number of financial mismanagement cases we have seen in the country, the need for custodianship and strict regulation of fund managers is obvious,” he said.
Straying from Principles
Bennett questioned whether ENPF was straying from its founding principles, asking for proof on why the current provident fund model had “failed” or why change was unavoidable.
He stressed that financial literacy and public education should have been prioritised long before the conversion process.
“Imagine if even half the effort that is going into selling this conversion had been channelled into educating people about saving, investing, and financial discipline, we would be much better off,” he argued.
ENPF’s Reassurances
ENPF Chief Executive Officer Futhi Tembe recently assured editors that the conversion would not undermine the Public Service Pensions Fund (PSPF).
She emphasised that the two schemes would coexist — the PSPF serving civil servants and the National Pension Fund covering private sector workers, self-employed individuals, and others outside formal retirement savings.
Tembe added that civil servants could also benefit by participating in both funds, noting that diversification is a principle of sound investment.
Call for Accountability
Despite these reassurances, Bennett insists the issue is not just technical design, but democratic engagement and accountability.
“Our futures are not tied to ideas or belief, they are tied to actions. We must see a prospectus that sets out the numbers, the risks, and the benefits clearly,” he said.
He concluded that the debate should not be confined to government officials, the ENPF board, and select media, but must include direct dialogue with the public.
The conversion of the ENPF into a National Pension Fund has already been endorsed by Cabinet and is contained in the Eswatini National Pension Fund Bill, 2025, currently before Parliament.
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