Energy Product Derivatives - Ghana

Ghana

The nominal value in the Energy Product Derivatives market is projected to reach US$45.09bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.75% resulting in a projected total amount of US$59.62bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.36 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 135.90k by 2029.

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Analyst Opinion

The Energy Product Derivatives market in Ghana is experiencing a notable shift in recent years.

Customer preferences: Customers in Ghana are increasingly turning to Energy Product Derivatives as a means of diversifying their investment portfolios and hedging against market volatility. The demand for these financial instruments is being driven by a growing awareness of the benefits of derivatives in managing risk and maximizing returns.

Trends in the market: One prominent trend in the Energy Product Derivatives market in Ghana is the emergence of new trading platforms and innovative products tailored to the specific needs of local investors. This trend is fueled by the desire to provide more accessible and efficient trading options in line with global best practices. Additionally, there is a noticeable uptick in trading volumes and liquidity in the market, indicating a growing interest and participation from both retail and institutional investors.

Local special circumstances: Ghana's Energy Product Derivatives market is also influenced by local regulatory frameworks and market dynamics. The government's efforts to promote financial market development and improve transparency have created a conducive environment for the growth of derivatives trading. Moreover, the increasing integration of technology in financial services is facilitating easier access to derivative products for a wider range of market participants.

Underlying macroeconomic factors: The macroeconomic landscape in Ghana, characterized by stable economic growth and a relatively well-regulated financial sector, is providing a solid foundation for the expansion of the Energy Product Derivatives market. The country's strategic location as a hub for regional trade and investment further enhances its attractiveness as a destination for derivative trading activities. Additionally, the presence of a young and tech-savvy population is driving the adoption of online trading platforms and digital financial services in the derivatives market.

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.