By: Nkosiyabusa Nsibande
Eswatini’s plans to establish a Sovereign Wealth Fund (SWF) received further international exposure this week after senior government representatives engaged one of Europe’s most established state investment institutions to gain practical insights into managing national wealth for long-term economic development.
Chief Executive Officer of the Eswatini Investment Promotion Authority (EIPA), Sibani Mngomezulu, together with the Ministry of Finance representative Thulisile Gamedze-Dlamini, met with Tom Feys, Chief Investment Officer of Belgium’s Federal Holding and Investment Company (SFPIM), to examine lessons from Belgium’s experience in operating a sovereign wealth fund structure over nearly two decades.
The discussions focused on the evolution of Belgium’s sovereign investment vehicle, its contribution to economic development, governance arrangements, investment strategy, and the relationship between the fund and government since its establishment. The engagement comes at a time when Eswatini is accelerating efforts to create its own sovereign wealth fund, an initiative government leaders have repeatedly identified as a strategic instrument for generating wealth for future generations while supporting economic transformation.
For Eswatini, the significance of the meeting extends beyond a routine exchange of ideas. It signals a deliberate effort by policymakers to study international best practices before finalizing the design of a national investment vehicle that could become a major pillar of the country’s long-term economic strategy.
According to information published by the Federal Holding and Investment Company, Belgium’s state investment institution manages assets worth approximately €14 billion and maintains investments across strategic sectors, including finance, energy, transport, aviation, life sciences, and technology. The institution is tasked with both generating financial returns and safeguarding assets considered important to Belgium’s economic interests.
One of the most relevant lessons for Eswatini is likely to be the Belgian approach to deploying state capital alongside private investors to stimulate economic activity while maintaining commercial discipline. The model demonstrates how government-owned investment entities can operate as long-term investors without becoming extensions of annual government spending programmes.
The engagement also comes as the government continues to refine the legal and institutional framework for Eswatini’s proposed sovereign wealth fund. Previous statements from the Ministry of Finance have indicated that the fund could be capitalised through a combination of state assets, including selected public enterprises, land holdings, mining interests and financial sector investments.
According to public statements previously made by Finance Minister Neal Rijkenberg, the proposed fund could ultimately hold assets valued at approximately E5 billion. Government has indicated that the institution would be expected to invest in productive sectors of the economy while creating a permanent store of national wealth capable of generating returns over the long term.
The concept of a sovereign wealth fund has gained increasing attention globally as governments seek mechanisms to strengthen fiscal resilience, diversify revenue sources and create long-term investment income. Unlike conventional government expenditure programmes, sovereign wealth funds are generally designed to preserve and grow assets over extended periods, allowing future generations to benefit from resources accumulated today.
Prime Minister Russell Dlamini has previously described the sovereign wealth fund initiative as an important component of government’s economic growth agenda, arguing that it has the potential to strengthen national wealth creation while reducing dependence on external financing and enhancing economic stability.
However, international experience suggests that the effectiveness of sovereign wealth funds depends heavily on governance standards, transparency, accountability, and investment discipline. Successful funds typically operate under clearly defined legal mandates and maintain a degree of operational independence that allows investment decisions to be guided by commercial rather than political considerations.
Against this backdrop, the engagement between EIPA, the Ministry of Finance, and Belgium’s sovereign investment institution represents more than a fact-finding exercise. It reflects an effort to understand how a sovereign wealth fund can evolve from a policy concept into a credible financial institution capable of delivering measurable economic value.
As government moves closer to implementing the fund, attention is likely to shift towards questions surrounding governance structures, investment mandates, asset allocation strategies and accountability mechanisms. The answers to those questions will ultimately determine whether Eswatini’s sovereign wealth fund becomes a transformative national asset or simply another state-owned institution.
For investors, policymakers and the broader business community, the Belgian engagement provides further evidence that Eswatini’s sovereign wealth fund ambitions are advancing beyond political rhetoric towards institutional design. If successfully implemented, the fund could emerge as one of the country’s most significant long-term economic instruments, providing a platform for wealth preservation, investment mobilisation and sustainable economic development.
