Commodities - Gambia

Gambia

The nominal value in the Commodities market is projected to reach US$149.20m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 2.98% resulting in a projected total amount of US$172.80m by 2029.
The average price per contract in the Commodities market amounts to US$0.00 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$53,690.00bn in 2024).
In the Commodities market, the number of contracts is expected to amount to 390.20k by 2029.

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Analyst Opinion

The Commodities market in Gambia has been experiencing a notable shift in recent years, reflecting changes in customer preferences and local special circumstances.

Customer preferences: Customers in Gambia have shown an increasing interest in investing in Commodities as a way to diversify their portfolios and hedge against market volatility. This trend is in line with the global movement towards alternative investments, driven by a growing awareness of the benefits of Commodities in a well-rounded investment strategy.

Trends in the market: In Gambia, there has been a noticeable uptick in trading activity in Commodities, with more investors actively participating in this market. This trend can be attributed to the improving infrastructure for trading platforms and the availability of information, making it easier for individuals to access and engage with Commodities. Additionally, the rising number of financial institutions offering Commodities trading services has also contributed to the market's growth.

Local special circumstances: Gambia's economy heavily relies on agriculture, which plays a significant role in driving the demand for Commodities in the country. The agricultural sector's performance directly impacts the prices of key Commodities, such as coffee and cocoa, leading to fluctuations in the market. Moreover, the government's initiatives to promote investment in Commodities have further fueled interest among local investors.

Underlying macroeconomic factors: The stability of Gambia's economy and its increasing integration into the global market have created a favorable environment for Commodities trading. As the country continues to strengthen its regulatory framework and improve transparency in the financial sector, investors are gaining more confidence in participating in the Commodities market. Additionally, external factors such as global market trends and geopolitical events also influence the direction of the Commodities market in Gambia.

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.