Africa from an investment perspective is by no means a finished product, but in a world of low growth and mature markets, it is essential for global minded investors to understand its potential, Rory Ord, Principal at RisCura, has said.

Ord said that investors looking at Africa have become markedly more sophisticated in recent years.

“Investors looking at Africa today want to understand this exciting continent in more detail. They want to look past the headline GDP numbers and understand what is really happening in the countries and regions within the continent, and how they are interacting with the rest of the world,” he said.

The stage of economic development, the reliance on commodities, and the state of physical infrastructure also play an important role, as does understanding the state of local investment, the depth of markets, and how market dynamics are affecting company valuations.

“Investors have realized that Africa is by no means homogenous,” said Ord.

The Bright Africa 2015 report, released today by RisCura, looks at the drivers, enablers and managers of investment on the continent.

According to the report, listed equity markets on the continent continue to improve, with investment managers reporting better liquidity in recent times.

Numbers of listed companies, fees and tough listing requirements remain issues to be solved, but several exchanges around the continent are revising these rules.

Listed market pricing remains attractive in many sectors, given the expected growth of these companies, and the pricing of companies across sectors mirrors those in developed markets.

In addition, investing in Africa through non-African exchanges can give exposure to African resources.

Private equity remains a key route for investors to access consumer facing companies, as well as industrials and even infrastructure.

The support of global and African DFIs remains strong and is increasing, but these DFIs are now investing alongside pension funds, endowments and family offices from several places around the world as well as domestic African capital.

According to the findings, African pension fund capital has reached $340bn and is growing rapidly, whereas insurance companies’ investment portfolios are now estimated to be around $270bn.

“This creation of local pools of capital and the advent of intra-African investment means that Africa is its own key investor,” said Ord.

RisCura is a global, independent financial analytics and investment advisory firm providing investment decision support in developed and emerging markets.