ENPF MULLS SELLING IDCE SHARES

MBABANE – ENPF is considering reducing its exposure in Eswatini Industrial Development Company (IDCE).

In the annual report for the 2017 financial year, Eswatini National Provident Fund Chief (ENPF) Executive Officer (CEO) Prince Lonkhokhela has revealed that they intend to begin discussions with suitable partners that could assist in growing the company to the next level.

“The fund is clear; the new partner must be an entity that is committed to Eswatini’s development,” disclosed ENPF.

Shareholders

Other shareholders of IDCE where ENPF owns a majority stake of 62 per cent are Standard Bank, Nedbank and government.  
It was also mentioned that IDCE performed below its set target, as a consequence of staff changes due to necessary restructuring. However, the shareholders committed to provide the necessary cash resources to enable the repositioning to gain traction.

It was also clarified that due to the extended period that the company had been inactive in the funding space for a longtime the development finance wing issued very few loans in the period.

“Simply potential borrowers were not bringing their projects forward for consideration. However, management through the restructuring has developed a robust marketing strategy that will ensure company interaction with Eswatini entrepreneurs,” reads the report in part.

ENPF further stated that it was worth noting that the companies’ property division performed exceptionally well.
The company made a pre-tax profit of E149 million, while in 2016 it made E78 million.
When contacted for comment, IDCE CEO Phiwayinkhosi Ginindza politely asked not to comment on the matter hinting that it was a shareholders issue.

Disclosed

It should be mentioned that ENPF, which has disclosed its intention to sell their IDCE stake, saw its local investment portfolio grow by almost double from E588 541 000 in 2015/2016 to E899 787 000 in the 2016/2017 financial year.
The hike in the investment was caused by the acquisition of shares in two local companies; Eswatini Mobile and Lojaf.

An amount of E120 million was invested in Eswatini Mobile and E37 million was invested in Lojaf. There was also an increase in the fund’s investment in IDCE from E287 105 000 to E408 639 000.
Other investments are E143 883 million at Happy Valley Hotel and Casino; E38 273 000 at EMPROP; E25 804 000 at Agri-Fund Old Mutual; E7 988 000 at Old Mutual Swaziland; and E2 730 000 at Lower Maguduza.
 

Post your comment

Your name:

Your e-mail address:

Add your comments:

Please enter the code you see in the image:

Image:

Code: