Energy Product Derivatives - Southern Africa

Southern Africa

The nominal value in the Energy Product Derivatives market is projected to reach US$157.90bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.22% resulting in a projected total amount of US$185.00bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$1.12 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 147.80k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Energy Product Derivatives market in Southern Africa is witnessing a notable increase in trading activities and market participation. Customer preferences in the Energy Product Derivatives market in Southern Africa are shifting towards more diverse investment options and risk management strategies.

Investors are increasingly looking for ways to hedge against market volatility and capitalize on price fluctuations in the energy sector through derivative products. Trends in the market indicate a growing interest in renewable energy derivatives, reflecting the global shift towards sustainable energy sources. Market participants are exploring opportunities in derivatives linked to solar, wind, and other renewable energy products, driven by environmental concerns and government initiatives promoting clean energy.

Local special circumstances in Southern Africa, such as the region's rich natural resources and increasing energy demand, are influencing the development of the Energy Product Derivatives market. Countries in the region are looking to leverage their energy reserves and infrastructure to attract investment in derivative products and enhance energy security. Underlying macroeconomic factors, including economic growth, regulatory reforms, and geopolitical stability, play a crucial role in shaping the Energy Product Derivatives market in Southern Africa.

As the region continues to focus on economic development and energy diversification, the demand for energy derivatives is expected to grow, providing opportunities for investors and market participants to engage in this dynamic 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.