Energy Product Derivatives - Ethiopia

Ethiopia

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$27.93bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.25% resulting in a projected total amount of US$32.78bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.17 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached United States (US$26.91tn in 2024).
In the Energy Product Derivatives market, the number of contracts is expected to amount to 182.50k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Ethiopia, a country known for its diverse cultural heritage and stunning landscapes, has been experiencing interesting developments in its Energy Product Derivatives market.

Customer preferences: In Ethiopia, there is a growing interest in Energy Product Derivatives as investors seek alternative investment opportunities beyond traditional financial instruments. Customers are increasingly looking to diversify their portfolios and manage risk more effectively by including energy derivatives in their investment strategies.

Trends in the market: One noticeable trend in the Energy Product Derivatives market in Ethiopia is the increasing participation of institutional investors. As more institutional players enter the market, trading volumes are seeing a steady rise. Additionally, there is a growing demand for customized derivative products tailored to the specific needs of Ethiopian investors.

Local special circumstances: In Ethiopia, the Energy Product Derivatives market is influenced by the government's initiatives to boost the energy sector. With ongoing projects aimed at expanding the country's energy infrastructure, there is a heightened focus on energy derivatives as a tool for hedging against price volatility and managing exposure to energy markets.

Underlying macroeconomic factors: The development of the Energy Product Derivatives market in Ethiopia is also supported by favorable macroeconomic conditions. As the country experiences steady economic growth and increasing foreign direct investment, there is a growing appetite for sophisticated financial products like energy derivatives. Moreover, the government's efforts to liberalize the financial sector have created a conducive environment for the growth of derivative markets.

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.