ENPF INVESTMENT INCOME GROWS BY 19.7% IN Q3

MBABANE - For the quarter ended September 30, 2024, the ENPF recorded a total income of E212 411 888, representing an increase of E32 970 680 compared to the previous quarter’s income of E179 441 207.

This growth was largely driven by higher investment income which rose by 19.7 per cent or E32 458 521 to E196 651 978 from E164 193 457 recorded in the previous quarter. The increase was underpinned by a recovery in the South African equity markets, following signs of improved business confidence on the back of a 25 basis points reduction in the repo rate by the South African Reserve Bank (SARB) and the slight cooling off in inflation during the quarter under review. The Eswatini National Provident Fund (ENPF)’s rental income showed a modest increase of E107 552 to E14 824 002, while other income remained stable at E935 908. This is according to the Ministry of Labour and Social Security’s 2nd Quarter Report for the financial year 2024/25.

Contributions

The Fund was established for the purpose of providing benefits for employed persons when they retire from their regular employment in old age or in the event of becoming incapacitated. The employer is responsible for paying statutory contributions on behalf of every employee who is eligible to become a member of the Fund. The employer is, however, given authority to take what is termed as the employee’s share of this contribution from wages, currently one-half of the statutory contribution payable.On the expenses side, the Fund’s total costs for the quarter amounted to E32 206 021, up by E 7 561 030 compared to the previous quarter’s E24 644 991. The largest contributor to this increase was the investment property expenses, which increased by E1 300 135 to E6 295 793, reflecting ongoing costs related to maintaining the fund’s investment properties.

The fund generated a strong operating surplus of E180 205 867, an increase of E25 409 650 from the previous quarter.“The fund remains well positioned to achieve its annual budget of E514 523 935 in total income, having already realised 41 per cent of this target during the quarter under review,” read the report in part. The fund’s investment performance is affected by the local, regional and global economic dynamics. Eswatini’s economy in Q3 of 2024 continued to experience modest growth, with GDP projected to expand by 1.2 per cent for the year. Inflation averaged 4.9 per cent, largely driven by rising food prices and increases in transportation costs.

The Central Bank of Eswatini (CBE) reduced the repo rate by 25 basis points to 7.25 per cent. Export performance remained subdued, particularly in the sugar and textiles markets, due to weaker demand in key markets like the European Union (EU) and the United States (U.S). The Eswatini stock market remained largely stable, with limited volatility due to the small size and illiquidity of the market. Government bonds saw a steady demand, with yields remaining in line with regional averages.

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