Swazi Observer

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RETIREMENT FUNDS MANAGING E30 BILLION ASSETS

By Hlengiwe Ndlovu | 2018-06-18

RETIREMENT funds are the country’s fastest growing industry as they currently manage assets in excess of E30 billion.

This was disclosed by Financial Services Regulatory Authority (FSRA) Chief Executive Officer Sandile Dlamini on Thursday during the graduation ceremony of the first ever group of certificate of proficiency in retirement fund trusteeship.

The ceremony was held at Sibane Hotel.

Dlamini said the E30 billion translates to 70 per cent of total funds in the financial services industry in the country. The graduates came from different companies such as the Mbabane Municipal Council, banks, and others. The graduates received their training from AMADI University College.

Dlamini described the course as ground-breaking as it was long overdue for the country to introduce specialised training for retirement fund trustees. In the meantime, the CEO also spoke highly of the country’s population as being generally literate and educated as statistics show that 89 per cent of the population can read and write.

Nevertheless, he lamented the high levels of financial illiteracy within such an educated populace. Dlamini explained that the reason this course is so important is that the graduating trustees would now be able to interpret the many technicalities involved in this industry as well as to encourage people to adequately save for their retirement years. “If we encourage people to save for their retirement, this will be a less burden for government because what we currently see is a sorry state of affairs where one works for over 50 years but they have nothing to retire to,” he said.

In another matter, the CEO outlined the need for a comprehensive social security system in the country, one which would enable people working in the informal sector to also save for retirement. “In his budget speech this year, the minister of finance highlighted the country’s need for a comprehensive social security system which will also cover domestic workers, herdboys and others,” he said, adding that the informal sector is currently the country’s biggest employer.

He also encouraged the graduating trustees to be independent and make it a point that they grow their knowledge so that they can be in a personal position to advise any retirement fund, regardless of whether they work for it or not.

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