TIBIYO A SOVEREIGN WEALTH FUND?

An international researcher, looking for information on Tibiyo Taka Ngwane would most likely google it, and this is what Wikipedia would say; “Tibiyo Taka Ngwane, meaning a wealth of the nation, is a Swazi sovereign wealth fund which was created through royal charter under the reign of King Sobhuza II in 1968. The company is currently held by King Mswati III in trust for the Swazi nation and is separate from the government.” We are living during times of political scrutiny, where everyone can claim knowledge and history that suit whatever narrative they wish to promote, but the truth remains.

What is a sovereign wealth fund?

A sovereign wealth fund is a state-sanctioned investment mechanism that is usually formed around the excess government or state income. The purpose of a sovereign wealth fund is to meet the needs of a country’s citizens and offer financial stability. The various types of sovereign wealth funds include stabilisation funds, savings or future generation funds, pension reserve funds, reserve investment funds, and strategic development sovereign wealth funds. Each fund has its unique focus and financial objectives. When one looks at the mission and vision of Tibiyo Taka Ngwane one would lean toward Tibiyo being a strategic development sovereign wealth fund. We have to use these fancy teams as we have joined the global world where everything must have a clear definition. Its website states that Tibiyo Taka Ngwane has a long history of driving and supporting the social development and economic growth of the nation of Eswatini.

Formative years of Tibiyo TakaNgwane

In Tibiyo’s 50th Anniversary Edition, we learn about its formative years.  Ingwenyama Sobhuza II established Tibiyo Taka Ngwane with the primary purpose of creating wealth to be used in the developmental endeavors of the Eswatini Nation. The main pillars of achieving this were articulated as an investment in business projects, education, health, and promotion of culture as well as traditions. Several sources were tapped to provide the initial capital base for funding operations. The main ones were mineral royalties, proceeds from the sale of cattle, and dividends from shares owned in the sugar industry.

On August 8, 1968, the first Board (now referred to as Main Committee) was announced by Ingwenyama. Included the following: Major General Prince Maphevu was appointed Chairman; Dr. Sishayi Nxumalo was appointed Chief Executive Secretary; RD (Bob) Friedlander was appointed Legal Advisor; Prince Mfanasibili, Logwazela Bhembe, and G Vilakazi were appointed members. Their mandate as a board from His Majesty King Sobhuza II was simple ‘go and make this vision of a national powerhouse a reality’. Go they did. In the early years of Tibiyo Taka Ngwane’s existence, an agreement was reached with the then Commonwealth Development Corporation (CDC), which was a development agency of the British Government.

Agreement

The agreement was over Mhlume Sugar and its other interests – including the then Eswatini Irrigation Scheme, in which Tibiyo Taka Ngwane acquired a 50 per cent shareholding. This was followed by other agreements where Tibiyo Taka Ngwane acquired additional shareholdings. In his capacity as Chief Executive Secretary, Dr. Sishayi Simon Nxumalo played a critical role in the formative years of Tibiyo Taka Ngwane. He was part of delegations that approached several multinational companies to negotiate for the purchase of shares in favor of Tibiyo Taka Ngwane. In 1978, he was appointed Managing Director (MD) of Tibiyo Taka Ngwane on a full-time basis. To enable him to continue interfacing with multinational organisations from a business angle, he was appointed Roving Ambassador, in addition to being Tibiyo Taka Ngwane’s Managing Director. This continued until 1983 when he relinquished the position of managing director, upon his appointment as minister for Finance with the full cooperation of CDC and other conglomerates.

The result was an increase in the organisation’s ability to pursue, earnestly, the four main pillars for the creation of wealth for the Eswatini Nation. By 1978 (i.e., the end of the first independence decade), Tibiyo Taka Ngwane had accumulated assets amounting to E50 million. By 1988 (i.e. by end of the second decade), the value of assets had more than doubled to above E100 million. To date, the asset value stands in the billions of Emalangeni. Dr. Sishayi Nxumalo once told me of a time they went to His Majesty King Sobhuza II to seek guidance on the design of the Tibiyo Taka Ngwane headquarters. He said it was one of the shortest meetings ever. The instructions were very simple ‘build a ‘stonehouse’, a rock that will stand hundreds of years after we are all gone’ which become brief to all the Architects’ bidding.

Stonehouse of the future

It occurred to me that Ingwenyama was not just talking about the building, but also about the institution itself. Everything he did was for the future. Tibiyo Taka Ngwane was the first-choice investment partner. It went for the big industrial businesses. They have one of the most impressive staff in teams of qualifications and have grown the company into billions in teams of turnover.  However, I have to be honest and put it as the average liSwati now sees it. One asked me what ever happened to Tibiyo or Tisuka for that matter. Have the organisations lived up to their founder’s dreams? No new share acquisitions in any major industry. No joint ventures of note. The leadership in mining and industry has not materialised.
The energy sector is facing a 2025 end-of-contract uncertainty and Tibiyo has not sprung into action. Well, yes, they did invest in property, such as Bhunu Mall, Simunye Plaza, and more recently some accommodation in Manzini and offices in Ezulwini.

However, it’s a far cry from the industrial and media projects such as the sugar industry, beverages, observer, and coal mining of yester years. What has been most disappointing is to see the old BCCI building in the central part of Manzini, empty for years. What a prime property to be idle and again there might be a very good reason, one would not know. Tibiyo seems to be going for safe investments and is just content to grow its old business base. It is alleged that His Majesty the King and her Majesty Indlovukazi has found themselves directly involved in business dealings that have exposed them to an unscrupulous businessman who has embarrassed them in the eyes of the public. Case in point is the iron ore saga, gold mining, swazi secret, and SWEET which were all great business ideas that could have benefited from Tibiyo’s vast expertise and experience. It is not safe for a Monarch to deal directly in business, and it perpetuates the false narrative, mainly by South Africans, that says he is grabbing all businesses Eswatini for himself and his family.  Tibiyo as an institution he holds in trust for emaSwati must be empowered to protect the monarchy and still give back to the people as per their vision. Comment sepembereswatini@gmail.com

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