Commodities

The nominal value in the Commodities market is projected to reach US$28.34bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.83% resulting in a projected total amount of US$35.88bn by 2029.
The average price per contract in the Commodities market amounts to US$0.07 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached United States (US$53.69tn in 2024).
In the Commodities market, the number of contracts is expected to amount to 455.40k by 2029.

Definition:

The commodities market refers to derivatives of commodities. These include financial vehicles such as options and futures. Derivatives allow investors to profit from a commodity’s value development without owning the physical commodity (e.g. instead of owning a unit of Gold, an investor could own a derivative of Gold). Therefore, physical commodities are out of scope in this analysis.

Structure:

The commodities market comprises derivatives of precious metals, industrial metals, energy products, agricultural products & the Emission Trade System. The segments of precious metals, industrial metals, energy products, and agricultural products are also providing price data of popular specific derivatives. The segment data of the Emission Trade System (ETS) is only provided for countries where an ETS is in place (therefore the number of countries where data is shown is reduced in comparison to other segments).

Additional information:

The market contains the following KPIs: annual notional value, the number of traded contracts, the open interest (number of outstanding contracts at the end of a year) as well as the average notional value per contract. Furthermore, the share of futures and options is provided for these KPIs to display even more insights into this market.

Options & Futures
Precious Metal Derivatives
Industry Metal Derivatives
Energy Product Derivatives
Agricultural Product Derivatives
Emission Trading System

Physical commodities
Other Derivative types
other Commodity Types

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.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.