Commodities - Zambia

Zambia

The nominal value in the Commodities market is projected to reach US$38.78bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.10% resulting in a projected total amount of US$49.74bn by 2029.
The average price per contract in the Commodities market amounts to US$0.11 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 391.80k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

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

Customer preferences: Zambian investors have shown a growing interest in commodities trading, seeking diversification and higher returns compared to traditional investment options. The allure of potentially lucrative gains in the commodities market has attracted a new wave of investors looking to capitalize on price fluctuations and market volatility.

Trends in the market: One prominent trend in the Zambian Commodities market is the increasing adoption of online trading platforms, providing investors with easy access to global markets and real-time trading opportunities. This trend has democratized commodity trading, allowing both seasoned investors and newcomers to participate in the market more actively.

Local special circumstances: Zambia's economy, heavily reliant on copper exports, has a significant impact on the commodities market within the country. Fluctuations in global copper prices directly influence investor sentiment and trading activities in other commodities. Additionally, the country's regulatory environment and infrastructure play a crucial role in shaping the dynamics of the commodities market.

Underlying macroeconomic factors: The stability of Zambia's currency, inflation rates, and overall economic performance are key macroeconomic factors influencing the commodities market. Economic indicators such as GDP growth, trade balances, and government policies can create opportunities or challenges for commodity traders in Zambia. As the country continues to navigate economic reforms and external pressures, the commodities market is likely to remain dynamic and responsive to these macroeconomic factors.

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.