Energy Product Derivatives - Tanzania

Tanzania

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$12.47bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 14.09% resulting in a projected total amount of US$24.09bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.13 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 92.56k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Energy Product Derivatives market in Tanzania is experiencing significant growth and evolution.

Customer preferences: Investors in Tanzania are increasingly drawn to Energy Product Derivatives as a way to diversify their portfolios and hedge against volatility in the global energy markets.

Trends in the market: The Energy Product Derivatives market in Tanzania is witnessing a surge in trading volume, driven by the growing interest from institutional investors and the adoption of advanced trading technologies by market participants.

Local special circumstances: Tanzania's strategic location in East Africa and its emerging status as a regional economic hub are attracting more foreign investors to participate in the Energy Product Derivatives market. Additionally, the government's efforts to modernize the financial sector and improve market regulations are creating a favorable environment for the development of derivative instruments.

Underlying macroeconomic factors: The stable economic growth in Tanzania, coupled with the increasing demand for energy products in the region, is fueling the expansion of the Energy Product Derivatives market. Moreover, the government's focus on promoting energy infrastructure development is expected to further boost the demand for derivative products in the country.

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.