SNPF

The Board, in-line with the Fund’s interest payment policy, of paying interest to members that is higher than what is obtainable in the banks-call account and above average inflation for that year, for the year-ended 30th June 2012 declared an interest of 9% per annum (2011:9%). In both years the rate was higher than bank call rate and inflation.

In spite of the obvious difficulties, it is gratifying to note that the outgoing Board succeeded in the following key projects: a) Funeral Benefit The Board delivered on the Funeral Benefit, which provides funeral services assistance to all qualifying SNPF members next of kin. The design of the scheme is however more meaningful to those members who are in the category of low income earners. b) Manzini Parkade Construction of the parkade began in earnest during the period under review. The project is expected to be finalised by early 2013. It will house a parkade, shopping centers and business offices. c) Mbabane Office Park (Portion 115 of Farm No.48) The Board engaged the Government of Swaziland for a 99 Years Lease of the property which has been earmarked for this landmark development. As dynamics of the negotiations changed, the Board eventually succeeded in negotiating for an outright purchase of the land in question. Gratitude and appreciation goes to His Majesty’s government for their insight and cooperation during the negotiations. These investments will change the face of the Manzini and Mbabane cities respectively, solidify SNPF’s investments portfolio and also be part of the Fund’s compliance with the Retirements Funds Act 2005’s requirement for more local investments.

Macroeconomic uncertainties are expected to continue to weigh in on investor sentiment and we expect the stock market to be slow even in the coming year. We look to the future though with confidence that our solid and resilient investment strategy will continue to generate value for our members. The conversion from Provident Fund into National Pension scheme will open great doors and bring an array of opportunities for the Swazi nation and our staff. We anticipate these changes will more than double the size of our business.