Energy Product Derivatives - Africa

Africa

The nominal value in the Energy Product Derivatives market market in Africa is forecasted to reach US$735.10bn in 2024.
It is anticipated to exhibit an annual growth rate (CAGR 2024-2028) of 3.20%, resulting in a projected total amount of US$833.80bn by 2028.
The average price per contract in the Energy Product Derivatives market market in Africa is US$0.22 in 2024.
When looking at a global comparison, the in the United States achieves the highest nominal value of US$9,915.00bn in 2024.
In the Energy Product Derivatives market market in Africa, the number of contracts is expected to reach 3.39m by 2028.
In Africa, the demand for Energy Product Derivatives in the Commodities market is steadily increasing due to growing investor interest in hedging strategies.

Market

Region

Region comparison

Currency

Analyst Opinion

The Energy Product Derivatives market in Africa is experiencing a significant growth trajectory driven by various factors unique to the region. Customer preferences in Africa are shifting towards more sophisticated financial instruments, including energy product derivatives, as investors seek to diversify their portfolios and hedge against market volatility.

Trends in the market show a growing interest in energy product derivatives in countries like Nigeria and South Africa, where the energy sector plays a crucial role in the economy. This trend is further fueled by the increasing participation of institutional investors in these markets. Local special circumstances, such as regulatory reforms and infrastructure development, are shaping the energy product derivatives market in Africa.

Countries like Egypt and Kenya are implementing market reforms to attract more foreign investments and boost liquidity in the derivatives market. Underlying macroeconomic factors, such as fluctuating oil prices and geopolitical tensions, are also influencing the energy product derivatives market in Africa. As oil-rich countries like Angola and Algeria look to diversify their economies, the demand for energy product derivatives is expected to increase.

Overall, the Energy Product Derivatives market in Africa is poised for continued growth as market participants capitalize on the region's evolving financial landscape and increasing demand for risk management tools.

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.