Energy Product Derivatives - Uganda

Uganda

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$26.96bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 6.45% resulting in a projected total amount of US$36.84bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.33 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 90.27k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Energy Product Derivatives market in Uganda is experiencing a notable growth trajectory driven by various factors.

Customer preferences: Customers in Uganda are increasingly turning to energy product derivatives as a way to hedge against price volatility and manage risk in the market. With the fluctuating prices of energy products globally, investors and businesses are seeking ways to protect themselves from potential financial losses.

Trends in the market: One of the key trends in the Energy Product Derivatives market in Uganda is the growing interest from institutional investors looking to diversify their portfolios. This trend is not unique to Uganda but is part of a broader global movement towards alternative investments. Additionally, the market is witnessing an increase in the adoption of renewable energy derivatives as the country aims to transition towards cleaner energy sources.

Local special circumstances: Uganda's energy sector is undergoing significant development with new discoveries of oil and gas reserves. This has led to a surge in demand for energy product derivatives as market participants seek to capitalize on the emerging opportunities in the sector. Moreover, the government's efforts to promote energy security and attract foreign investments are also contributing to the growth of the derivatives market.

Underlying macroeconomic factors: The macroeconomic stability of Uganda plays a crucial role in the development of the Energy Product Derivatives market. Favorable economic conditions, government policies, and regulatory frameworks are essential for attracting investors and ensuring the smooth functioning of the market. Additionally, factors such as GDP growth, inflation rates, and currency stability influence the overall investment climate 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.