Alquity targets African urban consumer

Its current top 10 holdings include MTN, Africa's largest mobile operator, Egypt's Orascom Construction Industries and Naspers, South Africa's biggest media company.

The urbanisation of Africa, creating demand for infrastructure, and an increase in disposable income are themes which are increasingly exciting fund managers and private equity investors.

Speculative investors in Africa had their fingers burned during the global financial crisis, largely due to lack of liquidity in these small markets which made hasty exits difficult.

But investors are starting to show greater interest again, mainly due to the high returns on offer.

Alquity can also invest in developed market stocks which are heavily exposed to Africa, a common way for more cautious investors to take on African risk.

"If you look at the annual reports of developed market companies like Diageo, Unilever, they are very excited about emerging markets," said Mcilroy.

"There are 500 million people with a range of discretionary expenditure - eating out, white goods, supermarkets, the banking sector, retail services."

Unusually, Alquity gives 25 percent of its management fee to The One Foundation, supporting microfinance projects - tiny business loans - in Africa.

"It's something we feel strongly about - it's not a hand-out, it's a leg-up," said Mcilroy.