Energy Product Derivatives - Zambia

Zambia

The nominal value in the Energy Product Derivatives market is projected to reach US$18.10bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 6.11% resulting in a projected total amount of US$24.35bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.34 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 56.21k by 2029.

Market

Region

Region comparison

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Analyst Opinion

Amidst the growing demand for energy product derivatives in Zambia, customer preferences are shifting towards more diverse investment options in the financial market.

Customer preferences: Investors in Zambia are increasingly looking at energy product derivatives as a way to diversify their investment portfolios and hedge against market volatility. The appeal of these derivatives lies in their potential for higher returns compared to traditional investments, attracting a new wave of investors seeking alternative financial instruments.

Trends in the market: The Energy Product Derivatives market in Zambia is witnessing a surge in trading activities, driven by the need for risk management and speculation. As more investors gain access to online trading platforms, the market is becoming more accessible, leading to an uptick in trading volumes. Additionally, the introduction of new derivative products tailored to the local market is further fueling this growth.

Local special circumstances: Zambia's energy sector plays a crucial role in the country's economy, making energy product derivatives a focal point for investors looking to capitalize on market movements. The government's efforts to promote renewable energy projects and enhance energy infrastructure have also created opportunities for investors to participate in the energy market through derivatives.

Underlying macroeconomic factors: The economic landscape in Zambia, characterized by fluctuations in currency value and inflation rates, is prompting investors to explore alternative investment avenues such as energy product derivatives. The need to safeguard investments against economic uncertainties is driving the demand for these derivatives, shaping the dynamics of the market in Zambia.

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.