Commodities - Namibia

Namibia

The nominal value in the Commodities market is projected to reach US$14.67bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.20% resulting in a projected total amount of US$18.02bn by 2029.
The average price per contract in the Commodities market amounts to US$0.03 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 419.50k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Commodities market in Namibia is experiencing a shift in dynamics that is influenced by various factors.

Customer preferences: Investors in Namibia are increasingly turning to commodities as a way to diversify their portfolios and hedge against market volatility. The ability to trade commodities provides them with a unique opportunity to access global markets and potentially earn higher returns.

Trends in the market: One notable trend in the Namibian Commodities market is the growing interest in gold and silver derivatives. This trend is fueled by global economic uncertainties and inflation concerns, prompting investors to seek safe-haven assets. Additionally, there is a rising demand for energy commodities, such as oil and natural gas, as Namibia continues to develop its energy sector.

Local special circumstances: Namibia's economy is heavily reliant on mining activities, particularly in the diamond sector. This dependence on mining has a direct impact on the Commodities market, as fluctuations in commodity prices can significantly affect the country's economic stability. As a result, there is a strong correlation between the performance of the mining sector and the demand for commodities trading in Namibia.

Underlying macroeconomic factors: The overall economic growth and stability of Namibia play a crucial role in shaping the Commodities market. Factors such as inflation rates, exchange rate fluctuations, and government policies can all impact investor sentiment and drive the demand for commodities. Additionally, global market trends and geopolitical events have a ripple effect on the Namibian Commodities market, influencing trading volumes and price movements.

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.