Energy Product Derivatives - Ivory Coast

Ivory Coast

The nominal value in the Energy Product Derivatives market is projected to reach US$27.22bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 6.19% resulting in a projected total amount of US$36.75bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.23 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 129.50k by 2029.

Market

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Analyst Opinion

The Energy Product Derivatives market in Ivory Coast is witnessing a notable upsurge in activity and interest.

Customer preferences: Traders and investors in Ivory Coast are increasingly turning to Energy Product Derivatives as a way to diversify their portfolios and hedge against volatility in the global energy markets. The convenience and flexibility of these financial instruments appeal to a wide range of market participants, from individual speculators to large institutional investors.

Trends in the market: One prominent trend in the Energy Product Derivatives market in Ivory Coast is the growing demand for derivatives linked to renewable energy sources. As the country strives to increase its renewable energy capacity and reduce its reliance on traditional fossil fuels, there is a rising interest in derivatives tied to solar, wind, and hydroelectric power. Additionally, with the government's push towards sustainable energy practices, there is a noticeable shift towards environmentally friendly investment options in the derivatives market.

Local special circumstances: Ivory Coast's position as a key player in the West African energy sector contributes to the development of its Energy Product Derivatives market. The country's strategic location, stable economic growth, and increasing energy consumption make it an attractive market for energy derivatives trading. Furthermore, the government's efforts to modernize the energy sector and attract foreign investment are creating a conducive environment for the growth of derivative products in the market.

Underlying macroeconomic factors: The stability of Ivory Coast's economy, coupled with its strong growth prospects, provides a solid foundation for the expansion of the Energy Product Derivatives market. As the country continues to attract foreign direct investment and diversify its economy, there is a growing need for risk management tools such as derivatives. Additionally, the government's commitment to infrastructure development and energy sector reforms further bolsters the confidence of market participants 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.