Africa's institutional investors
The existence of institutional investors is one of the main drivers of the development of capital markets. In many parts of the continent, institutions have been slow to develop and development finance institutions (DFIs) have long filled this gap. In more recent years, regulatory reform in pensions in many countries has driven the creation of more reliable forms of savings for individuals. While the assets in African pension funds are still relatively small, most are fast growing, creating local pools of capital for investment. Insurance penetration has also been low historically, but strong growth is expected in coming years, also resulting in the accumulation of capital in insurance investment portfolios.