Africa-Press – Eswatini. When the Eswatini National Provident Fund (ENPF) announced its plan to convert the long-standing lump-sum provident fund into a modern, two-tiered national pension system, many expected resistance. Instead, the reaction across industries, workplaces and communities has steadily shifted toward confidence and optimism. Stakeholders who once viewed the reform with caution are now recognising it as a transformative step for the country’s retirement landscape.
At the heart of this positive turnaround is ENPF’s intentional and transparent stakeholder engagement. Under the revitalised Lidlelantfongeni brand, the Fund has embraced open communication, national consultation and strong digital systems. This has strengthened trust and positioned the conversion not as a technical process, but as a national development milestone centred on dignity in retirement.
The move from a defined contribution provident fund to a defined benefit national pension scheme represents a landmark moment for Eswatini. While the technical redesign is significant, the human impact is even greater. The reform aims to secure monthly, inflation-adjusted pensions that protect retirees from the financial risks associated with once-off payouts, a challenge that has long undermined long-term financial well-being for many families.
A Nationwide Conversation Grounded in Transparency
Over recent months, ENPF’s outreach team, led by Conversion Specialist Miccah Nkabinde, has embarked on one of the most extensive consultative processes in the Fund’s history. Through face-to-face meetings with private-sector corporations, labour unions, SMEs, and public institutions, the team has opened dialogue that is both honest and solution-driven. Nkabinde notes that these engagements have drawn highly participatory discussions, signalling a shared commitment to strengthening retirement planning for all emaSwati.
The consultation process has given workers, employers and institutions a platform to express concerns, seek clarity and contribute to shaping the future pension model. Representative bodies such as ATUSWA, SUFIAW, FESWATU, FESBEC, and Business Eswatini, alongside entities like SBS, MVAF, EPTC, Ezulwini Municipality, and companies including Fashion International and Fidelity Services, have all affirmed that the conversion is not only necessary, it is long overdue.
Why the Shift Matters: A Human-Centred Reform
Central to the debate has been one consistent reality: lump-sum payments are failing retirees. Research shows that many people exhaust their funds within three to five years of retirement, leaving them vulnerable. Nkabinde explains that the new model directly addresses this by providing lifetime pensions aligned with international standards like ILO Convention 102.
For workers, the reform means predictable income that does not disappear after a short period. For employers, it creates stability in the workforce and supports national productivity. For the country, it lays the foundation for a more financially resilient society.
Tough Questions, Real Answers
Stakeholders raised important questions during the consultations, and ENPF responded with clarity.
Why convert at all?
Because a lump sum is mathematically unlikely to sustain retirees for decades. A pension provides lifelong stability.
Why not make the system voluntary?
Voluntary schemes face “adverse selection,” resulting in imbalances that can collapse pension sustainability. A universal system ensures fairness and protection for all.
Why include civil servants already under PSPF?
Actuarial modelling shows that participating in both PSPF and NPF strengthens civil servants’ retirement outcomes. Contract and casual government workers, historically excluded, will also gain security.
Will supplementary savings disappear?
No, they will be protected and preserved.
The emotional core of these sessions often came from workers asking: “What if my money finishes before my life does?” This universal fear underscores the urgency of reform.
Employers, often seen as cautious, have emerged as some of the strongest supporters. Leaders from Business Eswatini and FESBEC emphasised that stable retirement systems create stable workplaces, reduce future poverty pressures, and strengthen national productivity.
Inside the Lidlelantfongeni Effect: Digital Trust and Confidence
A major factor driving acceptance is the Fund’s digital transformation. The upgraded ENPF system now allows members to view records, track contributions and interact with the Fund in real time. This transparency has boosted public confidence. As Nkabinde notes, when people can access information on their phones and verify their contributions instantly, trust becomes the foundation for bold reforms.
Challenges, Delays and Calls for Fairness
Not everyone is celebrating. Some long-serving workers fear that delays in finalising the legislation may leave them outside eligibility thresholds like the 180-month minimum. ENPF has acknowledged these concerns, affirming its commitment to fairness and noting the importance of swift legislative action.
“These stories break us,” Nkabinde said. “The public has told us clearly — finish the job, and finish it now.”
Civil Servants and the Dual Advantage
The proposal to include civil servants prompted debate, but consultations revealed the benefits. Actuarial evidence indicates that civil servants would earn more over their lifetime with a dual-system approach. More importantly, government contract and casual workers, previously overlooked, will finally receive meaningful retirement protection. Stakeholders have called this “a levelling of the playing field.”
Calls for optional participation were addressed directly. Social security systems worldwide fail when participation is selective. One young HR officer described it well: “It’s like asking only sick people to buy medical aid, the system will collapse.” Universal contribution ensures long-term stability.
Growing Momentum as Private Sector Confidence Rises
What was once viewed as a complex structural shift is now seen by many business leaders as a crucial step for economic progress. A Business Eswatini executive highlighted that secure retirement systems help employees plan better, worry less, and remain productive throughout their careers. ENPF’s strong financial results, including a record 10% members’ interest and E631.2 million operating surplus, have further strengthened confidence.
As one board member put it, “This Fund belongs to its members. Our duty is to protect and grow it.”
With private-sector support rising, the conversion increasingly resembles a shared national mission rather than a government directive.
The Road Ahead: Towards a Stronger Future
While the reform has faced scrutiny, ENPF has emphasised transparency, fairness and inclusivity. The next crucial step is the passage of the conversion Bill in Parliament, informed by the nationwide consultations. The final design of the pension system will balance sustainability, affordability and long-term security.
This reform is more than a policy shift. It is a pledge to protect the financial future of workers, families and communities. It ensures that years of hard work translate into a dignified retirement.
As Nkabinde stated, “We are not writing laws. We are writing our future together.”
With workers voicing their needs, businesses offering support, and ENPF steering the process with clarity and transparency, Eswatini is entering a new era of social-security reform, one that promises dignity, stability and shared national progress.
Source: Eswatini Positive News – News Website
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