Ezulwini – Pension and retirement fund schemes have amassed a combined E55.8 billion in assets, as of June 2025, according to the Financial Stability Review presented by Central Bank of Eswatini (CBE).
The sector added over E5 billion this year to rise from E50.1 billion recorded in June 2024.
The CBE Governor, Dr Phil Mnisi, presenting the report this week described the pension industry as one of the country’s most robust financial pillars, highlighting that the sector’s sustained asset growth continues to reinforce national financial stability.
“The pension sector remains a key pillar of long-term financial stability, and the sustained growth in assets reflects sound management practices within the industry,” he said.
The CBE report highlights a year-on-year growth of 11.4%, reaffirming the sector’s resilience and its critical role in absorbing economic shocks.
Mnisi said that with the expansion of assets, pension funds can now better cushion against unexpected vulnerabilities, ensuring a stronger base of long-term capital for the broader financial market.
A sizable portion of this growth stems from foreign investments, the CBE said. By June 2025, offshore assets accounted for 52.3% of total pension fund holdings, equivalent to E29.2 billion, reflecting annual growth of 10.1%.
CBE shows that pension funds continued to direct the bulk of their offshore exposure toward equities, which made up 94.7% of all foreign investments.
Smaller allocations were reported in debt securities with 1.3%, collective investment schemes 2.9%, property having. 0.9% and other assets 0.1%.
While this foreign diversification supports geographic and currency spread, Mnisi cautioned that the heavy weighting toward equities increases sensitivity to global market volatility. As a result, Mnisi emphasised the need for enhanced risk-monitoring systems within the sector, especially during periods of heightened market uncertainty.
Discussion about this post