The formation of a National Unemployment Benefit Fund in Eswatini assessing options for the institutional framework and operation of the scheme

The report assesses options as regards the management and operation of a new Unemployment Benefit Fund (UBF) in Eswatini. Two institutions have been proposed by the Government as potential operators – the Public Sector Pension Fund (PSPF) and the Eswatini National Provident Fund (ENPF). Based on an analysis of the UBF business processes and its purpose: the fact that it presents a range of new challenges and requirements, as well as its nature as a short-term social insurance scheme, the report concludes that the best solution is for UBF to be an independent entity allowed – but not required – to let its operation or parts thereof be undertaken on a contractual basis by one or more other public entities. The second-best solution is to have the UBF operated by an existing entity, in which case the ENPF stands out as the best choice as it has key elements of the required infrastructure and competences in place already. However, the ENPF will need to be adapted to a new and broader role to ensure good and adequate governance and the necessary integrity and transparency for the exercise.