Africa-Press – Eswatini. Dividends received by Swazi Empowerment Limited (SEL) from MTN Eswatini amounted to E62.2 million, an increase of E5.1 million from E57.1 million received during the previous financial year.
Chairman of the Board Jethro Ndlangamandla informed shareholders during the annual general, meeting (AGM) convened on Friday at Royal Villas that the rise in dividend was because of an increase in profitability of MTN Eswatini Group from E333.8 million in 2020 (December 31) to E364.2 million 2021 (December 31).
The primary investment of SEL is the 19 percent shareholding in MTN, which was valued at E519 million as of March 31, 2022 (E530 million as of March 31, 2021).
MTN Eswatini remains the largest mobile telecommunications company in Eswatini and holds slightly above 80 per cent of the telecoms market share with the difference owned by Eswatini Mobile.
Ndlangamandla disclosed that interest earned during the year amounted to E11.8 million from E5.5 million.
He explained that the growth in interest income was due to fixed interest earned from Select and Eswatini Development Finance Corporation (FINCORP) bonds.
Ndlangamandla mentioned that the return on these bonds was not impacted by the reduction in interest rates that were noted during the year under review.
He went on to state the current year interest income was mainly from investments in Select Limited bonds amounting to E60 million, FINCORP bonds amounting to E20 million and Stanlib Money market investment amounting to E9.5 million.
“It gives me great pleasure that SEL a listed public entity in the Eswatini Stock Exchange (ESE), continued to perform well this financial year despite the tough operating environment and unprecedented period of global uncertainty.
“SEL delivered a resilient financial performance that was in line with our expectations and guidance for the year,” said Ndlangamandla.
He pointed out that profit after tax increased by 16 per cent to E 69.4 million from E59.6 million in 2021.
It was stated that the increase was mainly because of a 9.1 per cent increase in dividends received from MTN Eswatini, 112.6 per cent increase in interest income and lastly reduction in expenses by 7.2 per cent.
Ndlangamandla added that total comprehensive income declined by 11.4 per cent from E65.8 million to E58.2 million.
“The decrease was mainly caused by a fair value adjustment to the unlisted investment at MTN Eswatini in line with International Financial Reporting Standards. Earnings per share increased from 321.95 cents to 375.20 cents. Dividends per share increased from 253.1 cents to 324 cents,” Ndlangamandla said.
He also highlighted that SEL’s investment in MTN Eswatini had been revalued in accordance with International Financial Reporting Standards from E530 million in 2021 to E519 million in 2022.
The chairman added that the board has, through the investment committee, invested E15 million in Eswatini Building Society’s permanent shares and continues to look for investment opportunities in line with the investment policy statement of the company.
“The investment committee is in a process of performing its evaluation and due diligence on two potential investments,” he concluded.
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