MBABANE – While the Eswatini National Provident Fund (ENPF) recently reported an over 80% decline in investment income for the quarter ending December 31, 2024, fund administrators insist this short-term drop is paving the way for a more resilient and diversified investment strategy. The ENPF’s leadership maintains that, despite the disappointing figures, the fund is seizing the opportunity to recalibrate its portfolio for sustainable growth.

Short-Term Pressures, Long-Term Vision
The ENPF recorded E23 million in investment income—an 83.2% decrease from the E136 million posted in the previous quarter. However, ENPF CEO Futhi Tembe notes that a portion of the decline can be attributed to broader market fluctuations, which have affected property and equity returns across the region. She emphasizes that these dips are not unique to the ENPF but reflect a global trend of investment volatility.

“Market cycles are inevitable,” Tembe says. “While we cannot control these fluctuations, we can—and do—control how we respond. Our aim is to strengthen our portfolio’s resilience so that short-term dips do not derail our long-term objectives.”

Shifting the Portfolio Mix
In response to current market pressures, the ENPF is adjusting its asset allocation strategy. Although property and local capital market investments remain part of the portfolio, the fund is actively exploring:

• Infrastructure Development: Projects such as the MUMANI initiative, which promise steady returns over time and can drive broader economic growth.
• Regional Diversification: Expanding into more African markets beyond the traditional strongholds of South Africa and Eswatini, aiming to balance risk while tapping into new growth opportunities.
• Alternative Investments: Considering ventures in sectors like technology and renewable energy, which may offer more stable returns in volatile economic climates.

Commitment to Members’ Interests
The ENPF, which manages funds on behalf of thousands of contributors, reaffirms that its core mandate—safeguarding and growing members’ retirement savings—remains a top priority. The organization is coordinating closely with the Ministry of Labour and Social Security to ensure its evolving investment strategies align with regulatory requirements and international best practices.

Balancing Risk and Reward
Industry analysts observe that, while the headline figure of an 80% drop in quarterly returns is concerning, such declines often serve as catalysts for portfolio realignment. The ENPF’s move toward infrastructure projects and more diverse geographic markets may help cushion against future market shocks.

“We’re proactively turning a challenge into an opportunity,” Tembe adds. “By revisiting our investment mix, we are building a stronger foundation to deliver consistent returns for our members in the years ahead.”

Outlook for 2025
Looking forward, the ENPF’s leadership remains cautiously optimistic. They stress that the new strategy will take time to bear fruit, but they are confident that the shift toward a broader range of investments will ultimately position the fund for healthier, more stable returns. Observers also point out that, with prudent risk management, the ENPF could emerge from this challenging quarter more resilient than ever.