Commodities - Africa

Africa

The nominal value in the Commodities market of Africa is forecasted to reach US$11,140.00bn in 2024.
It is anticipated to demonstrate an annual growth rate (CAGR 2024-2028) of 0.04%, resulting in a projected total amount of US$11,160.00bn by 2028.
The average price per contract in the Commodities market of Africa stands at US$0.26 in 2024.
When compared globally, the highest nominal value is recorded the in the United States (US$45,690.00bn in 2024).
In the Commodities market of Africa, the number of contracts is expected to reach 43.82m by 2028.
In Africa, the demand for derivatives in the Commodities market is steadily increasing, reflecting a growing interest in investment opportunities within the region.

Market

Region

Region comparison

Currency

Analyst Opinion

The Commodities market in Africa has been experiencing significant growth and development in recent years. Customer preferences in the African Commodities market are shifting towards more diverse investment options, with an increasing demand for alternative investment products.

Investors are looking for ways to diversify their portfolios and manage risk, leading to a growing interest in Commodities as a financial asset class. Trends in the market show a rise in the trading volume of Commodities derivatives in countries like Nigeria, South Africa, and Kenya. This trend is driven by a combination of factors such as increasing awareness about the benefits of Commodities trading, improving regulatory frameworks, and the integration of technology in trading platforms.

Local special circumstances in African countries play a significant role in shaping the Commodities market. For example, in Nigeria, the volatility of the local currency and the dependence on oil exports impact the demand for Commodities as a hedging tool against currency fluctuations. In South Africa, the presence of a well-established financial market infrastructure contributes to the growth of Commodities trading.

Underlying macroeconomic factors, such as economic growth, inflation rates, and political stability, also influence the development of the Commodities market in Africa. Countries with stable economic conditions and favorable regulatory environments tend to attract more investors to the Commodities market, driving liquidity and market growth. Additionally, the integration of African economies into the global financial system has opened up new opportunities for investors looking to access the African Commodities market.

Methodology

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.