Africa-Press – Eswatini. When Eswatini National Provident Fund (ENPF) confirmed its ongoing conversion into a full pension fund, the announcement was meant to inspire confidence. After all, pension reform is not just about financial restructuring, it is about securing the dignity of emaSwati in their retirement years. Yet, the conversation has taken on a sharper edge after Public Service Pensions Fund (PSPF) Chief Executive Officer Masotja Vilakati sounded an alarm, calling for greater protection of civil servants’ pensions.
Two Institutions, One Goal: Security
On one hand, the ENPF has sought to reassure the public. Management has consistently emphasized that the conversion process is safe, orderly, and anchored in both local legislation and international best practices. Their message is simple: workers’ hard-earned savings are secure, and the shift will strengthen long-term sustainability by providing regular pension pay-outs rather than once-off lump sums.
On the other hand, PSPF’s CEO has highlighted the risks that could accompany pension reforms if not carefully managed. His cautionary stance is rooted in the responsibility of safeguarding civil servants’ benefits, a constituency that makes up the backbone of the country’s public sector. For Vilakati, the concern is not about opposing reform, but about ensuring the protection of accrued rights and shielding workers from possible financial shocks during the transition.
Why the Tension Matters
At the heart of the debate lies a critical question: how do we ensure that reforms meant to provide greater social protection do not inadvertently expose workers to new vulnerabilities?
For decades, provident funds have played a limited role, paying out lump sums at retirement, which often ran out quickly and left many pensioners dependent on family or state support. The shift toward pensions is widely seen as progressive, aligning Eswatini with global norms where retirees receive regular, lifelong income.
Yet, transitions of this magnitude require more than good intentions. They demand robust governance, transparent communication, and rigorous oversight. This is why Vilakati’s caution resonates: a mishandled conversion could risk eroding trust not just in ENPF, but in the broader pension system.
A Positive Opportunity for Reform
Despite the apparent tension, the debate itself is a positive sign. It reflects a maturing financial sector where independent voices are able to hold institutions accountable. ENPF’s assurances of safety must now be matched by demonstrable safeguards, clear investment policies, credible actuarial projections, and transparent reporting. At the same time, PSPF’s call should not be read as alarmist, but as an important reminder that pensions are not abstract numbers, but the lifeline of thousands of families.
The public, too, has a role to play. Workers must take an active interest in understanding how their funds are invested and what the conversion means for them personally. Dialogue between government, fund managers, unions, and civil servants will be key to building confidence.
The Road Ahead
If managed with prudence, the ENPF conversion could become a landmark in Eswatini’s social protection history, ensuring that retirees enjoy dignity rather than dependency. Vilakati’s caution, instead of undermining the process, should be seen as strengthening it by keeping the focus on accountability and transparency.
In the end, both institutions share the same goal: securing the future of workers. The challenge now is to harmonize reassurance with responsibility, and in doing so, to build a pension system that generations of emaSwati can truly trust.
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