Africa-Press – Eswatini. As the nation deliberates its future social security landscape, the debate surrounding the proposed conversion of the Eswatini National Provident Fund (ENPF) into a national pension scheme has intensified, revealing strong mixed reactions and deep-seated concerns across society.
By Miccah Nkabinde, ENPF Conversion Specialist
MBABANE – The conversation about the proposed conversion of the Eswatini National Provident Fund (ENPF) into a national pension scheme has captured the nation’s full attention in recent weeks
From the shop floors to the bus ranks, from WhatsApp groups to church gatherings, emaSwati are debating, sometimes gently, sometimes fiercely, what kind of future they want for their retirement. And as the author of Likhweti, I must begin by expressing my gratitude to all who have engaged so frankly with the material. Your feedback has been a mixed bag, but it is the kind of mixed bag that strengthens national dialogue.
Many contributors wrote to affirm the clarity brought by Likhweti’s explanations. As Mnelisi Mndzebele observed, the initiative could not have come at a better time.
“Thank you for the clarification as well as the Likhweti initiative. Many people are perplexed about the conversion, so this column will absolutely help the multitudes,” he said. His words reflect a widespread sentiment; many workers and employers admit that the concept of moving from a lump-sum model to a lifelong income model was initially daunting, but information and engagement are helping to reshape understanding.
Among those who welcomed the shift was Samkelisiwe Shongwe, who wrote passionately about the dangers of lump-sum payouts.
“Educate and mobilise until we are all on board,” she urged. “Imagine being broke after three months and the lump sum was between E200, 000 and E500, 000.” Her point is not hypothetical. Across Eswatini and in many neighbouring countries, studies have shown that most workers exhaust their retirement lump sums within three to eighteen months, often because of extended family obligations, medical emergencies, debt, or simply a lack of structured financial planning support.
Research conducted by the ENPF and the Eswatini Economic Policy Analysis and Research Centre (ESEPARC) has provided stark evidence used to justify the proposed conversion to a national pension scheme. These studies reveal a concerning trend that many retirees who receive a lump sum payment quickly exhaust their savings. According to the findings often cited in public discourse, most workers who receive a full lump sum are left with nothing within a short space of time, a situation that often leads to ‘abject poverty. This data underscores the argument that the current system fails to provide long-term financial security for the nation’s elderly.
Supporting the same position is Thembinkhosi Mabuza, who stressed the social and health advantages of lifelong income. “A steady pension contributes to a longer lifespan,” he said, adding that while he supports a pension-based system, he remains unconvinced about any talk of merging the Fund with the other contributory pension schemes. His concerns reflect a separate debate, one that does not automatically follow from the conversion itself. For clarity, the ENPF conversion Bill does not legally require a merger with the other contributory pension schemes; that is a different policy conversation altogether. The Bill contains absolutely no provision or language mandating or even suggesting the merger of the ENPF with any occupational pension scheme including the PSPF. The Bill is designed to complement and coexist with, not absorb, established pension schemes.
Other voices, such as Zanele Hlophe, expressed concerns rooted in practical realities. She asked how much a retiree would earn if the pension system were implemented today and whether dependants would be looked after should a pensioner pass away shortly after retirement. These concerns strike at the heart of the most common misconceptions. Under a pension system, survivor benefits are not an afterthought, they are a core component. When a pensioner passes on, the spouse or dependants continue receiving a portion of the monthly income, ensuring continuity and protection for the family. That protection does not exist under the lump-sum model, where once the money is spent, nothing more follows.
Another contributor, Sibusiso Methula, challenged the broader labour environment. He argued that no pension reform would be complete without addressing the instability faced by thousands of workers in short-term and seasonal employment. His appeal for improved job security and recognition of workers who contribute only sporadically. Sibusiso Methula’s observation reveals a deeper social challenge, one that the conversion seeks to mitigate. By transforming the ENPF into a pension fund, even workers with fragmented employment histories will build a foundation for old age income that does not evaporate when their contracts end, as long as the monthly contributions in aggregate would amount to a minimum of 180, despite their being non-consecutive.
While many of these views represent genuine concerns, there is also a sharp and compelling argument from experts who support the conversion. A social protection specialist offered one of the most striking endorsements yet. She stated that a country relying on lump sums retirement benefits, inevitably produces elderly poverty, while a nation investing in pensions produces dignity. “This conversion is not just a financial reform,” she noted. “It is a public health intervention.” Her perspective aligns with global best practice, where pension reforms are increasingly recognised as tools for reducing old-age poverty, decreasing reliance on extended families, and improving mental and physical well-being among senior citizens.
Small business owner S’thembiso Dlamini also shared his practical concerns. He explained that many small businesspeople already support ageing parents whose lump sums ran out years ago.
“A proper pension system means fewer families collapsing under the weight of supporting retirees who ran out of their money,” he said. In a society where informal support networks remain the primary safety net, the introduction of a structured, predictable pension system is more than administrative reform, it is a shift in how families survive.
Yet perhaps the most powerful testimony came from former seasonal worker Nathi Vilakati, who said in such an environment you never save enough.
“A pension scheme is the only guarantee that someone like me will not die without income.” His story resonates widely. Casual and temporary employees make up a significant portion of the country’s workforce, and the current lump-sum model does not serve them well. It provides a once-off payout that often covers immediate needs but rarely supports long-term well-being.
Despite strong support for the conversion, a substantial number of emaSwati still say they prefer the lump sum. They argue that the large payout offers freedom of choice, freedom to build a house, freedom to pay debt, freedom to start a business. These are understandable aspirations. However, the national data shows that the ‘freedom’ offered by lump sums is often short-lived. Without recurring income, many retirees fall into vulnerability. Clinics report rising numbers of elderly patients who cannot afford medication. Families report strain under the weight of supporting parents who no longer receive regular income. The cycle of poverty intensifies.
A pension, by contrast, introduces forced discipline and security no lump sum can match. It ensures that the worker who gave their prime years to the nation receives something back every month until the final day of their life. And crucially, it ensures that when death comes, the family is not abandoned. Survivor benefits offer a safety net that does not exist under the provident fund model. This is the heart of the pro-conversion argument: a pension uplifts not only the worker but the worker’s family, and the nation at large.
As the national debate progresses, Likhweti remains committed to transparent engagement providing accurate and accessible information. The conversion is not merely a financial recalibration; it is a generational turning point toward a more secure, equitable, and dignified retirement for all emaSwati. Whether one supports or opposes it, the reform deserves the nation’s full understanding. And as long as the questions keep coming, we will continue to answer them, with transparency, empathy, and depth.
Source: Eswatini Positive News – News Website
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