The rise of local institutional investors in Africa has allowed for capital markets on the continent to continue to develop, despite overall market slowdown.
At the Global Custody Forum in London, one delegate from a global bank with significant African exposure explained: "The emergence of domestic institutional investors has been a big driver of growth."
He added: "The economic impact has not stopped capital market developments."
Of the 54 African nations, the speaker cited Nigeria, Kenya and Ghana as the fastest developing economies, although South Africa still stands head and shoulders above all others.
Not including South Africa, the emergence of homegrown insurance companies and pension funds now accounts for $500 billion worth of assets in Sub-Saharan Africa.
The African banking delegate acknowledged that, on the global stage, this is still a comparatively small sum but explained that it represents a significant step forward for the region.
Another major driver of growth in African capital markets is the commitment of regulators to reforming and updating governing frameworks to allow for new financial structures, and opening their respective markets up to foreign investors. Unsurprisingly, Nigeria and Kenya were again cited as being front-runners in market reform.
Of an audience of global banking and technology representatives, roughly a third said they are already active in at least one African market.
