Commodities - Botswana

Botswana

The nominal value in the Commodities market of Botswana is forecasted to reach US$28.34bn in 2024.
It is anticipated to demonstrate an annual growth rate (CAGR 2024-2028) of 3.25%, resulting in a projected total of US$32.21bn by 2028.
The average price per contract in the Commodities market of Botswana stands at US$0.07 in 2024.
When considering a global perspective, the in the United States achieves the highest nominal value (US$45,690.00bn in 2024) in the Commodities market.
The number of contracts in the Commodities market of Botswana is expected to reach 431.40k by 2028.
Botswana's commodities market is witnessing increased interest from investors seeking diversification and hedging opportunities in uncertain global economic conditions.

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Analyst Opinion

The Commodities market in Botswana has shown a significant growth in recent years, reflecting the evolving dynamics of the financial sector in the country.

Customer preferences: Customers in Botswana have shown a growing interest in diversifying their investment portfolios through Commodities trading. This shift in preference can be attributed to the potential for higher returns and the opportunity to hedge against inflation and currency risks.

Trends in the market: One notable trend in the Botswana Commodities market is the increasing participation of retail investors. This trend is driven by greater access to online trading platforms and financial education initiatives. Additionally, there is a rising demand for environmentally sustainable Commodities, aligning with global trends towards responsible investing.

Local special circumstances: Botswana's stable political environment and sound regulatory framework have contributed to the growth of the Commodities market. The government's efforts to promote financial inclusion and develop the capital markets have also created a conducive environment for market expansion. Moreover, the country's strategic location as a gateway to the Southern African region enhances its attractiveness for investors looking to tap into regional opportunities.

Underlying macroeconomic factors: The growing diversification of Botswana's economy beyond traditional sectors like mining and agriculture has bolstered the demand for financial instruments such as Commodities. As the country continues to focus on economic reforms and infrastructure development, investor confidence is expected to strengthen, further driving the growth of the Commodities market. Additionally, factors such as inflation rates, exchange rate fluctuations, and global market trends play a crucial role in shaping the direction of the Commodities market in Botswana.

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.