Times Of Swaziland: ENPF INVESTMENT INCOME GROWS BY 19.7% IN Q3

ENPF INVESTMENT INCOME GROWS BY 19.7% IN Q3
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Nhlanganiso Mkhonta on 12/11/2024 08:15:00


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.