Africa-Press – Eswatini. Securing Tomorrow! Your Voice, Your Retirement, Our Journey
With Miccah Nkabinde , ENPF Conversion Specialist
Welcome to ‘Likhweti’, our vital platform dedicated to ensuring every economically active person in Eswatini achieves a secure and dignified retirement.
First, I want to sincerely thank our CEO, Futhi Tembe, for giving me the opportunity to write this column. She did not simply facilitate the space but saw the opportunity and fully backs the conversation as part of her future-focused strategy of transparency, genuine dialogue, and collective participation in finding lasting solutions. ‘Likhweti’ is our safe space to speak directly to you; our members, our contributors, employers, tenants, all emaSwati and visitors, who care about a dignified retirement. This is not my column; it is your direct channel for conversation, feedback, critical questions, and shared ideas about the future of social security in Eswatini.
I am Miccah Nkabinde, your Conversion Specialist at the Eswatini National Provident Fund (ENPF). I am immensely optimistic and assertive about the transformative roadmap ahead. We stand on the verge of a historic shift in Eswatini’s social security landscape, and I am here to walk that road with you.
Together, we will demystify the system, explore exactly how the upcoming ENPF conversion will maximise benefits, and define the powerful role this reform plays in securing a robust financial future for every single contributor. Our mission is clear. To ensure the promise of a dignified retirement is realised for all emaSwati. Let the conversation begin!
Why ‘Likhweti’?
The designation ‘Likhweti’ symbolises the inauguration of a robust and sustainable architecture for social security in the Kingdom of Eswatini. This appellation signifies a paradigm shift, analogous to the clarity delivered by the dawn, and reflects our commitment to enhancing the transparency and integrity of retirement planning, pension administration, and the forthcoming National Pension Fund (NPF). Our objective is to ensure the establishment of a fiscally sound and resilient system that provides predictable benefits and fosters long-term financial security for all participants.
Why Social Security Matters
Social Security is a fundamental policy instrument designed to mitigate economic insecurity arising from key life-cycle contingencies. It functions as a collective mechanism for income redistribution and risk pooling across a population. At a technical level, the system is structured around distinct, though often complementary, pillars:
Contributory Schemes (Social Insurance)
These are primarily defined contribution (DC) or defined benefit (DB) systems financed through mandatory contributions from employees and/or employers. Entitlement to benefits (e.g., old-age pensions, unemployment, or work injury compensation) is directly linked to an individual’s contribution history. The existing Eswatini National Provident Fund (ENPF) is a prime example of a contributory savings-based model.
Non-Contributory Schemes (Social Assistance)
These are financed primarily through general state revenue (taxation) and are often means-tested or based on universal eligibility criteria such as age or residency. These schemes, like social pensions, guarantee a basic safety net regardless of prior employment contributions, directly targeting poverty alleviation.
The Current Socio-Economic Context and Vulnerability Assessment
Eswatini operates within a challenging economic milieu (total set of economic conditions, factors, and influences) that underscores the urgent need for comprehensive social security reform. The current landscape is characterised by severe structural vulnerabilities:
Entrenched Poverty
Despite being classified as a lower-middle-income country, Eswatini exhibits alarmingly high poverty rates, with estimates indicating that a significant proportion of the population (59%) lives below the national poverty line. This indicates a failure of current mechanisms to provide a sufficient income floor for a large segment of the populace.
The Informal Economy Challenge
A critical structural issue is the prevalence of the informal sector, which constitutes an estimated up to 70% of the national workforce. Workers in this sector lack mandatory contributions, formal employment contracts, and are therefore entirely excluded from the protective scope of traditional provident and pension funds. This results in significant coverage gaps and the concentration of economic risk at the individual/household level.
Elderly Vulnerability
The existing provident fund structure, which mandates lump-sum payouts upon retirement, often proves insufficient for long-term subsistence. Retirees frequently exhaust these savings rapidly, leading to heightened old-age poverty and dependency, which undermines the fundamental goal of providing dignity in later life.
The Vision: A National Safety Net for All
To systematically address these systemic gaps, the Government has articulated the Eswatini National Social Security Policy (NSSP). The NSSP serves as the guiding document for evolving the fragmented existing structure into a comprehensive, inclusive, and sustainable national social security system.
The policy’s long-term strategic objectives align with international best practices (such as the ILO’s Social Protection Floors Recommendation) and are focused on:
Universalisation of Coverage
Integrating previously uncovered populations, especially those in the informal economy, into the formal protection framework.
Benefit Adequacy
Transitioning from short-term savings payouts to reliable, periodic income streams (pensions) to combat old-age poverty.
Systemic Cohesion
Ensuring greater coordination and progressive implementation across contributory and non-contributory elements to maximize risk pooling and solidarity across the entire citizenry.
The impending conversion of the ENPF to a National Pension Fund is the most critical initial deliverable under the NSSP framework, designed to structurally address the inadequacy of the current provision for retirement security.
Your Voice Matters
This column is just as much yours as it is mine. I want to hear from you. Your questions, your ideas, and even your concerns. Together, we can ensure that the new pension system is robust, fair, and responsive to the needs of every liSwati.
Expect future editions of Likhweti to discuss:
Migration from Lump Sum to Lifelong Income: The Provident Fund Problem
Introduction of the ENPF Bill 2025: The Heart of the Conversion
Broadening the Umbrella: The Mandate for Inclusion and Coverage
Your Contributions and Benefits: What Changes for the Member
Answer frequently asked questions
Let’s make this a conversation. Your engagement will help us build a system we can all trust.
Follow Likhweti – The Dawn of a New Social Security
Every Tuesday on major media platforms
Authored by Miccah S. Nkabinde, ENPF Conversion Specialist
Send your questions and feedback to: [email protected]
(+268) 2508 2000
TOLL FREE: 800 6002
Facebook X-twitter Linkedin Instagram
About the Author:
Miccah Nkabinde is a highly accomplished Senior Executive and Social Security Transformation Expert with more than three decades dedicated to Eswatini’s financial, social security, and pension fund administration. He served 26 years as General Manager Operations at the ENPF and currently leads the conversion of the Provident Fund into a National Pension Fund. Nkabinde holds an MSc in Leadership and Change and a specialist certification in Managing Social Security & Pensions from the University of Witwatersrand, supplemented by international studies in Singapore and Italy. He is a committed Christian, family man, and sports enthusiast, particularly soccer. He is also an avid farmer, with a passion for livestock rearing.
For More News And Analysis About Eswatini Follow Africa-Press
