MBABANE – The Eswatini National Provident Fund (ENPF) closed the 2024/25 financial year on a strong footing.
The fund delivered a solid investment performance across both local and external markets, resulting in a notable expansion of its asset base.
The fund’s total assets grew to E7.14 billion, representing a 13.2 per cent increase from E6.31 billion in the previous year, underlining ENPF’s growing importance as one of the country’s largest institutional investors.
This growth was driven by improved returns from listed investments in South Africa and global markets, alongside stable performance from domestic unlisted investments, property holdings, loans and fixed income instruments.
ENPF’s diversified investment model continues to serve as the backbone of its business strategy, balancing the dual objectives of generating competitive returns for members while supporting domestic economic development.
A key feature of ENPF’s 2025 performance was the contribution of investments in South Africa and offshore markets. The fund deployed E2.93 billion, equivalent to 42 per cent of its total investment portfolio, into external markets.
This exposure proved instrumental in boosting overall returns, particularly as South African equities recorded strong gains during the year.
The fund’s listed equity portfolio benefitted from improved market sentiment in the region, supported by easing inflationary pressures and expectations of interest rate cuts.
South African equities delivered robust double-digit returns, outperforming most global equity markets. Bonds in South Africa also generated solid returns, benefitting from stabilising macroeconomic conditions.
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Strong financial performance boosts fund sustainability
MBABANE – ENPF recorded a 12 per cent return on investments for the year, exceeding its long-term performance objectives.
This translated into a strong operating surplus, underpinned by fair value gains on investments and disciplined cost management.
Total revenue increased significantly, while operating expenditure remained contained, allowing the fund to generate a healthy surplus.
This improved financial position strengthens ENPF’s balance sheet and enhances its capacity to meet future benefit obligations to members.
The growth in assets also improves ENPF’s resilience against market shocks.
With a larger asset base and diversified portfolio, the fund is better positioned to absorb periods of market volatility without compromising long-term sustainability.
To support the growing scale and complexity of its investment operations, ENPF has undertaken governance reforms, including the establishment of a dedicated Investment Division.
This move is aimed at strengthening internal investment research, portfolio monitoring and risk management capabilities.
Enhanced governance structures are expected to improve oversight of external asset managers and strengthen due diligence processes for domestic investments. Over time, this should translate into more disciplined capital allocation and improved risk-adjusted returns.
The fund is also integrating environmental, social and governance considerations into its investment decision-making framework, aligning its portfolio with sustainable development objectives while managing long-term risks.
ENPF’s expanding asset base has growing significance for the business community. With over E4.1 billion deployed locally, the fund remains one of the largest pools of long-term capital available for domestic enterprises and strategic projects.
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