It is official! Africa has been named the "new Asia" due to competitive GDPs and its outperforming many emerging markets during the global recession. Many may find this surprising due to the conventional view of Africa as a poor and corrupt continent plagued by political uncertainty. However, the best investment opportunities exist where perception does not match reality. Because the state of Africa is not as bad as has been portrayed, firms that do attain success are some of the savviest and ripe for being invested in. Why? Because, indigenous African companies trade at half the levels of their Western counterparts due to the perception the world has of Africa.

Over the course of the past 10 years, there are parts of Africa that have taken gradual steps towards greater democracy, security and prosperity. Even Nigeria is considered a macroeconomic success by conventional standards, despite its reputation as today's most corrupt nation on earth. Its annual GDP growth rate more than doubled to an average of 7.3% between 2003 and 2006. In addition, inflation lowered to single digits last year. Most importantly, foreign exchange reserves are nearing $50 billion due to the boom in oil exports.

Sub-Saharan African countries have experienced an average growth rate of 6% for the third straight year, which is growing toward 7% this year. At this rate, Africa's poverty rate is expected to be reduced by 50% by 2015. That said, sub-Saharan Africa is growing faster than Asia, with the exception of India and China. The growth rates seen by African nations is due to various factors such as high oil and other commodity prices, practical government policies and an emphasis on tourism. Of interest, Kenya is one of Africa's fastest growing economies, despite the fact that it does not have any commodities, because of the revenues it brings in from tourism. In addition, Zambia's growth is due to copper and agricultural exports. This may come as a surprise to many but, Africa has developed an emerging middle class and Nigeria has a mobile-phone penetration of 8%, which is rising rapidly.

Of particular significance is China's decision to invest in Africa. Even during China's economic slump, it is looking to invest in Africa more. In fact, the nation's President, Hu Jintao, recently concluded an eight-nation tour of Africa. China's efforts have been proven fruitful as trade between China and Africa rose to a record $55.5 billion last year. Amazingly, a third of Chinese oil is now imported from Africa.

It is important to note that China's efforts are fueled by pure economic self-interest rather than good development policies because it needs Nigerian oil, South African platinum, Tanzanian timber and Zambian copper to attain status as a superpower. Therefore some, like the Zambians, have expressed that they feel they are not benefitting from their nations' recent growth as much as the Chinese. I am sure that we will continue to hear similar stories from natives from other countries as time progresses.

Optimists hope that a combination of improving infrastructure and debt forgiveness in conjunction with accumulated financial reserves will create a momentum that will continue in Africa after its commodity/tourism boom turns, as all markets do.