On the import side mauritius morocco nigeria sierra

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Nigeria, Sierra Leone, South Africa and Tunisia saw a more than 25 per cent decline overthat period. The slowdown in trade flows was due to declining import demand in keyexport markets, a shortage of trade finance and falling commodity prices. Since the crisisbegan, several countries in the region have experienced difficulties in obtaining tradecredit.4. Capital flowsThe financial crisis has also affected capital flows to the region. Foreign directinvestment (FDI) flows to Africa declined by 36 per cent in 2009 relative to 2008,reflecting partly the fall in global demand for commodities resulting from the crisis. Thecrisis affected the two main components of FDI: Greenfield investments and cross-bordermergers and acquisition (M&As). For example, M&As declined by 73 per cent between2008 and 2009. Reduced FDI flows have had a more severe impact in countries such asChad, Equatorial Guinea, Gambia, Liberia and Seychelles, that have average FDI-GDPratios above 10 per cent. Remittances are another form of capital flows that have beenaffected by the crisis. The annual growth rate of remittance flows to sub-Saharan Africafell from 47.6 per cent in 2007 to -3 per cent in 2009. The main reason for this decline isthat the reduction in economic activities in developed countries has reduced opportunitiesfor African migrants. Cape Verde, Gambia and Lesotho are particularly vulnerablebecause remittances account for over 10 per cent of their GDP. On the other hand,although North African countries receive large inflows of remittances, the reduction ofthese inflows does not affect their economies as badly because they represent a smallpercentage of their GDP.18 |P a g e
2.2 Empirical reviewOngore, V.O. (2013) assessed the determinants of financial performance of commercialbanks of Kenya. The authors used linear multiple regression model and GeneralizedLeast Square on panel data to estimate the parameters. His findings showed that bankspecific factors significantly affect the performance of commercial banks in Kenya,except for liquidity variable. But the overall effect of macroeconomic variables wasinconclusive at 5% significance level. The moderating role of ownership identity on thefinancial performance of commercial banks was insignificant. Thus, he concluded thatthe financial performance of commercial banks in Kenya is driven mainly by board andmanagement decisions, while macroeconomic factors have insignificant contribution.Kouser (2012) investigates the financial performance of Islamic banks and compareswith the conventional banks operating in Pakistan using CAMEL model. The samples werecomposed of four banks from Full-fledge Islamic Banks, six from Islamic Branches ofConventional Banks and four Conventional Banks. Through comparison of means andtrend analysis of ratios supplemented with ANOVA and Levene’s test, he found thatIslamic banks have adequate capital and have good asset quality when compared toIslamic branches of conventional banks and conventional banks. In addition, Islamic

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