Agricultural Product Derivatives - Africa

Africa

Highlights

The nominal value in the Agricultural Product Derivatives market is projected to reach US$311.20bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.42% resulting in a projected total amount of US$386.40bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.02 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached United States (US$12.32tn in 2024).
In the Agricultural Product Derivatives market, the number of contracts is expected to amount to 19.25m by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Agricultural Product Derivatives market in Africa is experiencing a notable surge in interest and activity.

Customer preferences: Customers in Africa are increasingly turning to Agricultural Product Derivatives as a way to diversify their investment portfolios and hedge against market volatility. The potential for high returns in a relatively short period is attracting both institutional investors and individual traders to this market.

Trends in the market: In Nigeria, the largest economy in Africa, there is a growing demand for Agricultural Product Derivatives, particularly in commodities like cocoa and maize. The country's agricultural sector plays a significant role in its economy, making these derivatives an attractive investment option. Additionally, in South Africa, investors are showing a keen interest in derivatives linked to products like sugar and wheat, reflecting the country's strong agricultural base.

Local special circumstances: One of the key factors driving the growth of Agricultural Product Derivatives in Africa is the continent's rich agricultural resources. With a large portion of the population engaged in agriculture, there is a natural inclination towards investing in products linked to the sector. Moreover, the increasing adoption of technology and online trading platforms is making it easier for investors across Africa to access and trade these derivatives.

Underlying macroeconomic factors: The macroeconomic landscape in Africa, marked by rapid urbanization and a rising middle class, is creating a conducive environment for the development of the Agricultural Product Derivatives market. As disposable incomes increase, more individuals are looking for investment opportunities beyond traditional avenues. This, coupled with the continent's agricultural potential, is fueling the growth of this market across various African countries.

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.