There is a strong case for more exchange-traded funds in Africa, says Eugene Visagie, risk manager at Novare Investments.

"Since the start of the century, Africa's growth as an investment destination has been driven by improved macroeconomic fundamentals, political stability, higher commodity prices and robust domestic demand.

"Africa is under-researched, which creates exciting investment opportunities, including in often overlooked well- established companies."

Visagie said the use of ETFs and exchange-traded notes as alternative forms of investment had grown in popularity.

Investment issues often associated with emerging markets included high trading costs, low liquidity, exchange controls, and limited quality research.

According to Visagie, emerging markets such as India and China have successful ETFs tracking the broader financial market, while frontier markets such as Kenya and Nigeria could be accessed via ETF or ETN frameworks.