Industry Metal Derivatives - Eastern Africa

Eastern Africa

The nominal value in the Industry Metal Derivatives market is projected to reach US$160.20bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.85% resulting in a projected total amount of US$193.50bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.05 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in China (US$2,835.00bn in 2024).
In the Industry Metal Derivatives market, the number of contracts is expected to amount to 3.26m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Metal Derivatives market in Eastern Africa is experiencing a notable increase in trading activities and market participation. Customer preferences in the Metal Derivatives market in Eastern Africa are influenced by a growing interest in diversifying investment portfolios and hedging against commodity price fluctuations.

Investors in this region are increasingly turning to metal derivatives as a way to manage risk and potentially enhance returns. Trends in the market indicate a rising demand for metal derivatives such as futures and options, driven by the region's expanding economy and the need for effective risk management tools. Additionally, the development of financial markets in Eastern Africa is creating more opportunities for investors to access metal derivatives and participate in global commodity trading.

Local special circumstances, such as improving regulatory frameworks and infrastructure for financial markets, are also contributing to the growth of the Metal Derivatives market in Eastern Africa. As the region continues to strengthen its economic fundamentals and attract foreign investment, the demand for metal derivatives is expected to further increase. Underlying macroeconomic factors, including stable economic growth, increasing industrialization, and a growing middle class with disposable income, are creating a conducive environment for the expansion of the Metal Derivatives market in Eastern Africa.

These factors are driving both institutional and retail investors to explore metal derivatives as part of their investment strategies in the region.

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.