Agricultural Product Derivatives - Tanzania

Tanzania

Highlights

The nominal value in the Agricultural Product Derivatives market is projected to reach US$10.71bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.31% resulting in a projected total amount of US$13.87bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.13 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 84.17k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Agricultural Product Derivatives market in Tanzania is experiencing a notable shift in recent years.

Customer preferences: Investors in Tanzania are increasingly showing interest in agricultural product derivatives as a way to diversify their portfolios and hedge against market risks. The ease of trading these derivatives and the potential for high returns are attracting a growing number of market participants.

Trends in the market: One of the key trends in the Tanzanian Agricultural Product Derivatives market is the introduction of new financial products tailored to local agricultural commodities. This trend is driven by the rising demand for more specialized derivatives that cater to the unique characteristics of the Tanzanian agricultural sector. Additionally, there is a growing trend towards electronic trading platforms, making it more convenient for investors to participate in the market.

Local special circumstances: Tanzania's agricultural sector plays a crucial role in the country's economy, making agricultural product derivatives particularly relevant. The market is influenced by local factors such as weather conditions, government policies, and global market trends. These circumstances create both opportunities and challenges for investors in the Tanzanian Agricultural Product Derivatives market.

Underlying macroeconomic factors: The overall economic stability and growth in Tanzania are contributing to the development of the Agricultural Product Derivatives market. As the country continues to experience economic expansion, investors are looking for new opportunities to maximize their returns. Additionally, government initiatives to support the agricultural sector are boosting confidence in agricultural product derivatives as a viable investment option.

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.