MBABANE – The UNESWA Endowment Fund has signed an Investment Policy Memorandum of Agreement (MoA) with Cape Town-based advisory firm Independent Actuaries and Consultants (IAC).
This is regarded as a decisive move aimed at stabilising the financial future of the University of Eswatini (UNESWA) and positioning the institution for long-term sustainability.
The signing ceremony, held last week at the Mountain View Hotel, formalised a flagship partnership that will guide the development of a comprehensive investment policy for the Endowment Fund – a critical governance instrument expected to shape how millions of Emalangeni will be invested to support the national university.
According to UNESWA Endowment Fund Chief Executive Officer Vulindlela Simelane, the agreement comes at a pivotal moment for the institution.
“We are here today to sign a flagship partnership with Independent Actuaries and Consultants to spearhead a more investment-oriented approach and hybrid funding strategies for the advancement of the University of Eswatini,” said Simelane.
An investment policy is a formal framework, defining how an institution manages, allocates and safeguards its financial assets. It sets rules on risk tolerance, asset allocation, governance structures, reporting requirements and ethical considerations such as Environmental, Social and Governance (ESG) principles.
The UNESWA Endowment Fund’s Strategic Plan contains six key business units: The Emvasi Alumni Club, Umfundzate Skill and Capability Development Initiative, Smart Infrastructure, Investment, Enterprise and Research and Development.
Within these business units, the investment policy falls under the Investment Unit, which is responsible for growing the Endowment Fund’s capital base through diversified investment portfolios, strategic partnerships and revenue-generating initiatives.
The investment policy will serve as the UNESWA Endowment Fund’s ‘constitution’ for investment decisions, guiding Board members, asset managers, custodians and advisors.
The urgency of the agreement is linked to UNESWA’s financial challenges. The university has reportedly faced deficits and technical insolvency estimated at approximately E500 million, prompting the Endowment Fund to adopt a more commercially driven funding model.
Simelane emphasised that the Endowment Fund has been mandated through its Notarial Deed of Trust to mobilise resources to ensure the institution’s sustainability in the short, medium and long term. “UNESWA has experienced challenges culminating in deficits and technical insolvency and the Endowment Fund has been mandated to mobilise resources to ensure sustainability,” he said.
*Full article available on Pressreader*
Leave a comment