MBABANE – Swazi Empowerment Limited (SEL) has signalled a renewed focus on dividend flows from its flagship investment in MTN Eswatini.
According to the company’s latest interim performance for the six months ended September 30, 2025, SEL’s total comprehensive income fell dramatically to E3.6 million in the six months to September 30, 2025, from E59.1 million recorded in the comparable period ended September 30, 2024.
The subdued interim outcome underscores the impact of valuation movements and financing costs, even as the underlying investment portfolio continues to generate solid cash returns.
During the six-month period under review, SEL’s income profile was anchored by dividends and interest earned from its diversified portfolio of listed equities and fixed-income instruments.
Dividend income remains the backbone of the group’s earnings model, with MTN Eswatini, in which SEL holds a strategic 19 per cent equity stake, continuing to account for the bulk of dividend inflows.
However, the interim period was marked by higher finance costs and subdued fair value movements, which weighed on overall comprehensive income.
While profit at operating level remained positive, non-cash adjustments and interest expenses diluted the bottom line, resulting in the steep year-on-year contraction in comprehensive income.
Management has indicated that dividend performance, particularly from MTN Eswatini, is expected to improve, supported by the telecoms operator’s resilient market position and its ability to generate strong operating cash flows despite sector-wide pressures.
“The performance of the company is expected to improve in the next reporting period as the company will receive dividends from Swazi MTN Limited,” said the company.
It is worth noting that MTN Eswatini recently reported that its profit after tax dropped from E237.5 million in 2023 to E196.3 million in 2024.
The 4.9 per cent revenue decline was primarily driven by a drop in voice and data services, which fell by 5.7 per cent and 14.7 per cent respectively.
According to SEL Company Secretary Makhosazana Mhlanga, dividends received from MTN dropped to E25.17 million in the 2025 financial year, a decline of E6.13 million from the E31.3 million received in 2024.
The company’s 2023 dividend from MTN stood at E40.56 million, meaning that over the past three years, SEL’s dividend income from MTN has plunged by E15.39 million.
This decline has forced SEL to diversify its investment portfolio to reduce dependence on MTN dividends. “Despite the drop, MTN remains a cornerstone of our portfolio, contributing about 73 per cent of SEL’s total dividend income of E34.5 million,” Mhlanga said.
SEL’s investment strategy remains centred on building a diversified portfolio of equity investments across both listed and unlisted companies, complemented by selective exposure to fixed-income instruments.
The company prioritises businesses with proven growth trajectories, strong governance structures and experienced management teams, while maintaining a long-term investment horizon.
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… balancing short-term volatility with long-term value
MBABANE – SEL has reiterated that fluctuations in comprehensive income, particularly those driven by fair value adjustments, should be interpreted within the context of its long-term investment mandate.
The company actively manages its investments across different phases of the economic cycle, offering shareholders exposure to asset classes that are typically less accessible to retail investors.
The interim decline in comprehensive income to E3.6 million therefore reflects timing and valuation dynamics rather than a deterioration in cash-generating capacity.
Management remains confident that improved dividend flows, especially from MTN Eswatini, alongside stable interest income, will support earnings resilience in subsequent periods.
Subsequent to the March 2025 year-end, SEL completed the acquisition of a 49 per cent equity stake in UFS International (Proprietary) Limited, further diversifying its portfolio and expanding its exposure to new growth avenues.
The investment aligns with SEL’s strategy of partnering with businesses that demonstrate scalability and strong future earnings potential.
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