Lion economies

AAA

DEFINITION of 'Lion economies'

A nickname given to Africa's growing economies, which had a collective GDP of $1.6 trillion in 2008, close to Russia's or Brazil's. Key sectors contributing to Africa's collective GDP growth include natural resources, retail, agriculture, finance, transportation and telecommunications. Improvements in political stability and economic reforms have aided growth. (For more, see: Why You Should Pay Attention To Africa Right Now.)

INVESTOPEDIA EXPLAINS 'Lion economies'

The International Monetary Fund estimates that sub-Saharan Africa’s economies will grow by 5.4% in 2014 and by 5.8% percent in 2015. Nigeria’s economy, Africa’s largest, could grow at about 7.1% a year through 2030, according to McKinsey & Co.

As big as Africa's collective GDP is and as fast as it's growing, Africa-only mutual funds or ETFs are rare. The sole continent-wide ETF, the GDP-weighted Market Vectors Africa ETF (AFK), invests in South Africa (22%), Nigeria (18%), Egypt (17%), Morocco (9%) and Kenya (2%).

See also: Tiger Economy; Tiger Cub Economies; Celtic Tiger; Four Asian Tigers; and other 'tiger' variants.

RELATED TERMS
  1. Anatolian Tigers

    A colloquial term that refers to a number of cities in central ...
  2. Nordic Tiger

    A colloquial term for the Scandinavian nation of Iceland. Prior ...
  3. Tatra Tiger

    A nickname or colloquial term for the central European nation ...
  4. Gulf Tiger

    A colloquial term for the glittering city and emirate of Dubai ...
  5. Baltic Tiger

    A colloquial term that refers to any one of the three Baltic ...
  6. Tiger Cub Economies

    The four Southeast Asian economies of Indonesia, Malaysia, the ...
RELATED FAQS
  1. No results found.
Related Articles
  1. Options & Futures

    The Most Important Technical Indicators For Binary Options

    Trading binary options is not for the novice, but if you're ready to delve in, get to know the best technical indicators.
  2. Economics

    Does A Junk Rating Reflect Russia's Fundamentals?

    Moody’s, like other credit rating agencies, has downgraded Russia’s sovereign debt rating to non-investment grade, but does this reflect Russia's economy?
  3. Investing

    What’s The Latest Market Volatility Strategy?

    A minimum volatility (min vol) strategy would be top of mind for investors. In today’s market climate the case for min vol is particularly timely.
  4. Investing

    Hedged ETFs That Help You Cushion Currency Impact

    If you’re an investor holding non-U.S. assets, the returns on your investments will be affected when you translate your investment from its local currency
  5. Investing

    Active Funds: Getting What You Are Paying For?

    Fund investing could have hidden costs that can potentially make a big impact on your final return, particularly over the long-term.
  6. Economics

    This Is A Small Country With Huge Potential to Grow

    Trinidad and Tobago's increased revenue and economic success have been primarily generated by its energy sector, but it still might be best to diversify.
  7. Mutual Funds & ETFs

    Will the Natural Gas ETF KOLD Stay Hot?

    Proshares UltraShort Bloomberg Natural Gas ETF isn't an investment for the faint of heart.
  8. Mutual Funds & ETFs

    Be Aggressive with this Leveraged Natural Gas ETF

    This leveraged ETF offers big short-term potential, but do the risks outweigh the potential rewards?
  9. Economics

    The World's Top 10 Economies

    A look at the top ten economies in the world.
  10. Mutual Funds & ETFs

    How To Minimize ETF Fees

    ETFs offer broad exposure to a variety of styles, sectors, regions and more. But the fees can be a bit steep. Here are ways to minimize them.

You May Also Like

COMPANIES IN THIS ARTICLE
Hot Definitions
  1. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  2. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  3. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
  4. Investment Grade

    A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such ...
  5. Fringe Benefits

    A collection of various benefits provided by an employer, which are exempt from taxation as long as certain conditions are ...
  6. Irrevocable Trust

    A trust that can't be modified or terminated without the permission of the beneficiary. The grantor, having transferred assets ...
Trading Center