Sudanese President Omar al-Bashir, right and his Chinese counterpart Hu Jintao, third right, look at a model of an oil refinery during a visit to the facility north of Khartoum in February. China and other Asian countries have invested billions in Africa - but much of it in the continent's resource industries. ABD RAOUF/AP FILE PHOTO

Walking along the streets of Khartoum these days, it's not very difficult to find a dim sum restaurant.

It's an odd image, to be sure. The colourful Chinese signs – for everything from restaurants to pharmacies – stand out in Sudan's dusty capital. But it's a reflection of Africa's rising economic reality. Foreign investment, once scared away by fears of war, corruption and instability, is pouring into the continent like never before.

Last year alone, nearly $40 billion worth of foreign direct investment landed on African soil – more than double that of 2004. Africa's growth rate is now outpacing both Japan and the United States.

And Asian investors are leading the way. Exploding economies in places like China, India and Singapore mean that those countries are in need of untapped natural resources and fresh markets for their goods. Africa is the perfect fit.

In fact, the economic ties between the two continents are now the strongest in the developing world. China has companies in nearly every African country, and upwards of 750,000 Chinese nationals work on the continent.

But despite the multi-million-dollar contracts and trade deals, this new era of co-operation, as the United Nations calls it, has done little to boost Africa's fortunes.

That's because much of the foreign investment has been geared towards the continent's resource-rich oil and mining industries, which often generate low tax revenues – meaning little money actually trickles back into the economy.

For example, according to a UN report, Ghana has seen a significant spike in investment in its gold industry, yet receives as little as 5 per cent of the value of the gold it exports. So despite its mineral wealth, nearly 80 per cent of the country lives on less than $2 a day.

At the same time, many of the business deals with countries like China are becoming wrapped up in the continent's political troubles.

Beijing has long been criticized for propping up the regime in Sudan accused of committing genocide in Darfur. Nearly two-thirds of Sudan's oil exports are sold to China, in deals worth $2 billion.

For Sudan, increasingly isolated for its role in the killing of civilians, that is much needed cash.

While most Western countries would hesitate to work with governments suspected of massive human rights violations, China sees the allegations against Sudan as internal affairs. For them, business and politics don't mix. That has many people worried and has spurred calls in the U.S. for a boycott of next year's Olympics in Beijing if China does not do more to end the bloodshed in Darfur.

So if Africa is going to reap the benefit of economic investment, foreign businesses will need to stop treating the continent as a place to flood markets with cheap goods in exchange for oil and minerals, no questions asked.

Many of the continent's economies are driven by single commodities. Those economies must diversify if they are going to compete. And Africa will have to better attract foreigners to its manufacturing and agricultural sectors, alongside its lucrative natural resources, by clamping down on corruption, red tape and poor governance.

Doing so would mean the billions of dollars pouring into Africa would benefit local populations the way it is supposed to. That's an investment worth making.

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Craig and Marc Kielburger are children's rights activists and co-founded Free The Children, which is active in the developing world. Online: The Kielburgers discuss global issues Monday in the World & Comment section. Take part at thestar.com/globalvoices.