Commodities - Malawi

Malawi

The nominal value in the Commodities market is projected to reach US$11,390.00m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.69% resulting in a projected total amount of US$13,650.00m by 2029.
The average price per contract in the Commodities market amounts to US$0.02 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 418.20k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

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

Customer preferences: Customers in Malawi have shown a growing interest in diversifying their investment portfolios, seeking alternative options to traditional investments like stocks and bonds. This shift in preference towards Commodities is driven by the potential for higher returns and portfolio risk management.

Trends in the market: The Commodities market in Malawi has witnessed an increase in trading volume and liquidity, indicating a rising level of participation from investors. This trend can be attributed to the development of more sophisticated trading platforms and increased awareness about the benefits of including Commodities in investment strategies.

Local special circumstances: Malawi's economy heavily relies on agriculture, with a significant portion of its GDP coming from the production and export of agricultural commodities. This reliance on commodities as a primary source of revenue has influenced the local market dynamics, making the trading of financial derivatives linked to commodities a natural fit for investors in the country.

Underlying macroeconomic factors: The macroeconomic environment in Malawi, characterized by factors such as currency fluctuations, inflation, and political stability, plays a crucial role in shaping the Commodities market. Investors closely monitor these macroeconomic indicators to make informed decisions about their investment strategies in Commodities. Additionally, government policies and regulations regarding the trading of Commodities also impact market trends in Malawi.

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.