Commodities - Uganda

Uganda

The nominal value in Uganda's Commodities market is forecasted to reach US$58.72bn in 2024.
It is anticipated to demonstrate an annual growth rate (CAGR 2024-2028) of 3.44%, resulting in a projected total amount of US$67.22bn by 2028.
The average price per contract in Uganda's Commodities market stands at US$0.09 in 2024.
When compared globally, the in the United States achieves the highest nominal value (US$45,690.00bn in 2024).
In Uganda's Commodities market, the number of contracts is expected to reach 653.70k by 2028.
Uganda's Commodities market is experiencing increased interest in trading coffee futures, reflecting the country's significant role in the global coffee trade.

Market

Region

Region comparison

Currency

Analyst Opinion

The Commodities market in Uganda is experiencing a notable shift in recent years.

Customer preferences: Customers in Uganda are increasingly showing interest in investing in Commodities as a way to diversify their investment portfolios and hedge against inflation. This trend is in line with the global rise in demand for alternative investment options beyond traditional stocks and bonds.

Trends in the market: One of the key trends in the Ugandan Commodities market is the growing popularity of trading in financial derivatives such as futures and options. This trend is driven by the desire of investors to speculate on price movements without owning the underlying assets. Additionally, the increasing participation of institutional investors in the market is contributing to higher trading volumes and liquidity.

Local special circumstances: Uganda's Commodities market is also influenced by local factors such as government regulations and policies. The regulatory environment plays a crucial role in shaping the market structure and investor behavior. Moreover, the level of financial literacy among market participants in Uganda is a significant factor that impacts trading activities and investment decisions.

Underlying macroeconomic factors: The development of the Commodities market in Uganda is closely linked to the overall macroeconomic conditions of the country. Factors such as GDP growth, inflation rates, and exchange rate stability all play a role in shaping investor sentiment and market dynamics. Additionally, geopolitical events and global economic trends can have a ripple effect on the Ugandan Commodities market, influencing prices and trading volumes.

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.