ENPF 6-MONTH REVENUE RISES BY 25%

MBABANE - The Eswatini National Provident Fund (ENPF) has posted a robust 25 per cent revenue growth for the six months ending December 31, 2024.

According to the fund’s six-month financial analysis, its total income reached E262.2 million, up from E210.2 million in the prior year.

This strong performance was driven by higher investment returns, increased rental income and favourable market conditions.

The ENPF’s investment portfolio was a major driver of its revenue surge, benefitting from strong market sentiment, easing inflation and interest rate cuts in South Africa.

Interest income from investments remained stable at E54.7 million, comparable to the prior year’s E54.85 million, supported by the strong performance of the South African listed portfolio managed by Allan Gray, Ninety-One and Balondolozi.

The fund’s dividend income rose 19 per cent year-on-year (YoY) to E25.3 million, supported by significant dividend payments from:
w     FNB Eswatini (E4.2 million)
w     Montigny Investments (E2.3 million)
w     Happy Valley Hotel (E8.3 million), reflecting post-COVID-19 business recovery.

Unrealised fair value gains surged 55 per cent YoY to E119.1 million, up from E77 million in the prior year, reflecting rising asset valuations amid improving investment conditions.

Interest income from loans and advances increased 10 per cent to E25.68 million, despite no new loans being issued, due to the compounding effect of interest over time.

Rental income climbed 9 per cent YoY to E30.3 million, supported by a 5 per cent rental escalation in October 2024 and strong occupancy rates across the fund’s property portfolio.

While revenue surged, ENPF maintained disciplined cost management, with total expenditure rising by just 3 per cent to E68.34 million, from E61.15 million in the prior year.

This represents 45 per cent of the annual budgeted expenditure of E151.9 million, keeping spending in line with projections. Personnel costs remained the largest expenditure item at E22.8 million, accounting for 34 per cent of total costs. This represents a modest 2 per cent increase from E22.3 million in the prior year, mainly due to a 5 per cent cost-of-living adjustment effective July 2024.

Management

Furthermore, investment property expenses amounted to E12.42 million, a slight 3 per cent increase from E11.68 million, managed effectively through bulk purchasing strategies to control maintenance costs.

The fund saw investment management fees slightly rising to E12.36 million, up from E12.08 million, in line with the growing value of the investment portfolio.

Management expenses saw a controlled 3 per cent increase to E5.86 million, driven by:
w     A 21 per cent reduction in Imbube Marathon costs, from E2.8 million in 2023 to E2.2 million in 2024.
w     A 44 per cent decrease in Board member fees, from E1.01 million to E567 000, as fewer ministerial meetings were held compared to the prior year. E533 000 spent on the new know your customer (KYC) project, which was not in place in 2023.

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