Energy Product Derivatives - Burundi

Burundi

The nominal value in the Energy Product Derivatives market is projected to reach US$2.22bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.99% resulting in a projected total amount of US$2.97bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.19 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$26,910.00bn in 2024).
In the Energy Product Derivatives market, the number of contracts is expected to amount to 12.55k by 2029.

Market

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Analyst Opinion

The Energy Product Derivatives market in Burundi is experiencing a shift in customer preferences towards more diversified investment options in the financial sector.

Customer preferences: Investors in Burundi are showing a growing interest in Energy Product Derivatives as a way to hedge against market volatility and diversify their investment portfolios. This trend is in line with global market movements where investors are increasingly looking for alternative investment opportunities beyond traditional assets.

Trends in the market: In Burundi, the Energy Product Derivatives market is witnessing an uptick in trading volumes and participation from both institutional and retail investors. This can be attributed to the increasing awareness about the benefits of derivatives in managing risk and enhancing returns. Moreover, the development of the financial sector in the country is providing investors with easier access to derivative products.

Local special circumstances: One of the key factors driving the growth of the Energy Product Derivatives market in Burundi is the improving regulatory environment. With the government taking steps to enhance transparency and investor protection in the financial markets, investors feel more confident in exploring derivative products. Additionally, the presence of a stable banking system and a growing economy are contributing to the overall positive sentiment towards derivatives trading.

Underlying macroeconomic factors: The macroeconomic landscape in Burundi, characterized by stable economic growth and a relatively low inflation rate, is creating a conducive environment for the development of the Energy Product Derivatives market. As investors seek ways to optimize their investment strategies in a growing economy, derivatives are becoming an attractive option due to their potential for higher returns and risk mitigation. Furthermore, the integration of Burundi into regional economic blocs is opening up opportunities for cross-border trading in derivatives, further fueling market growth.

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.