SEL acquires 49% stake in UFS International for E41 mln
By Kwanele Dhladhla
Swazi Empowerment Limited (SEL) has added another major asset to its diverse investment portfolio after acquiring a 49 percent equity stake in UFS International (Proprietary) Limited.
Company Secretary, Makhosazana Mhlanga, disclosed the development when announcing the company’s financial results for the year ended March 31, 2025.
Mhlanga confirmed that the acquisition was funded entirely through SEL’s reserves, at a total cost of E41 million. She emphasised that the transaction formed part of SEL’s strategy of long-term value creation and diversification, ensuring that the company remained resilient to sector-specific shocks.
“Diversification of income streams remains a key priority for SEL, as it enhances financial stability and allows the company to continue providing sustainable returns to shareholders,” Mhlanga stated.
According to SEL, the purchase price was not arbitrarily set. An independent consultant was engaged to conduct both the valuation and full due diligence on UFS International.
Several factors were considered during this process, including the valuation results, potential diversification benefits, and expected returns.
Mhlanga said the thorough approach ensured that the purchase price was fair and aligned with SEL’s long-term investment objectives.
“This acquisition was evaluated not only on financial grounds but also based on strategic fit and growth potential,” she noted.
The UFS International stake adds a new dimension to SEL’s already varied portfolio, which currently includes:
19 percent equity stake in MTN Eswatini Limited
4.92 percent equity stake in First National Bank Eswatini Limited
Investments in Select Bond (SML 1010)
Exposure to Eswatini Development Finance Corporation Bond (FIN507)
Swaziland Building Society Permanent Shares
This sectoral spread, the company argues, provides a cushion against volatility in any single area of the economy and reinforces its ability to deliver sustainable value to shareholders.
UFS International, historically known as Usutu Forest Primary School, has a rich legacy in Eswatini’s education sector. Established in January 1963 primarily to educate the children of Kraft Mill employees, the school was initially owned by SAPPI, the global paper company.
In 2002, governance shifted to a parent-led Governing Council, and UFS International became a Section 21 Company.
Since then, the institution has grown steadily, offering a balanced and effective education with a strong emphasis on both academics and extracurricular development.
Today, UFS International caters for children from Grades 000 through to Form 5, having officially launched its High School phase in January 2017.
The school boasts state-of-the-art facilities, a fully resourced Learning Support Centre, and a strong reputation for producing pupils who regularly secure scholarships at top high schools.
Its curriculum integrates academics, sport, and cultural programmes, ensuring a holistic approach to education.
SEL believes that UFS International’s forward-thinking approach to education and its expansion into secondary schooling positions the institution as a sound long-term partner.
With future development plans in Mhlambanyatsi Village expected to attract new families seeking quality education, SEL sees the investment as both strategic and socially impactful.
“UFS International represents not just a financial investment but also a commitment to contributing to the growth of Eswatini’s education sector,” Mhlanga said.
The acquisition underscores SEL’s dual strategy of delivering shareholder value while supporting sustainable national development.