Energy Product Derivatives - Zimbabwe

Zimbabwe

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$18.44bn 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$25.20bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.27 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 73.61k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Energy Product Derivatives market in Zimbabwe is experiencing a notable shift in recent years. Customer preferences in Zimbabwe are increasingly leaning towards energy product derivatives as a way to diversify investment portfolios and hedge against market volatility.

With a growing awareness of the benefits of financial derivatives, investors are showing more interest in this market segment. Trends in the market indicate a rising demand for energy product derivatives in Zimbabwe, driven by the need for risk management and speculation opportunities. As the economy continues to evolve, market participants are seeking innovative ways to capitalize on price movements in the energy sector through derivative instruments.

Local special circumstances, such as the country's energy infrastructure and government policies, play a significant role in shaping the Energy Product Derivatives market in Zimbabwe. Limited access to traditional energy markets and regulatory changes impact the development and trading of energy derivatives in the country. Underlying macroeconomic factors, including inflation rates, foreign exchange fluctuations, and overall economic stability, also influence the growth of the Energy Product Derivatives market in Zimbabwe.

As investors navigate these economic variables, the demand for energy derivatives as a financial tool is expected to persist in the market.

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.