He added: "That is leading to a major growth in spending and consumerism across the continent… People begin to need things like insurance, retail services, supermarkets and home services. All the things that any middle class economy needs, Africa needs and it needs it in major amounts."
Scharar said he invests in pan-African supermarket chains, and also banks and insurance companies or products, as Africa is currently under-banked.
He said natural resources remained an important part of the Africa story, but warned that China's involvement in the sector comes with downsides.
"Some of China's involvement is really counterproductive for Africans, because it is so tied to Chinese resources and lacks a lot of transparency. In the end, I do not think it is going to be the success story of Africa by any stretch," said Scharar, adding that he has very little direct exposure to the natural resources sector.
Like fellow investor Mark Mobius, who heads Templeton Asset Management's emerging markets group, Scharar remains positive about South Africa's investment potential despite the outbreak of violence, which saw 44 killed at a Lonmin mine in August, and deteriorating labor relations across the country. (Read More: Mark Mobius Sticks With South Africa Bet Despite Turmoil)
"People I talk to in South Africa, of all stripes, want to get on with growing the country and taking their rightful place as a more developed country. I think these things will pass," he said.