International Journal of Energy Security and Environmental Research (ISSN 2047-3354) Vol. 1 no. 2, 43-58.
The Environmental Implications of Chinese State-owned
Enterprises (CSOEs) investment in Africa’s energy sector
May Tan-Mullins
China’s enhanced role within the global economy has profound implications for the
energy sector of Africa. As energy security has become a pressing concern due to increasing
demand in China, Beijing embarked on a strategy to enhance its inluence as a development
‘partner’ in Africa. Along with its economic presence, China has rapidly expanded its
environmental footprint in Africa largely because its investments are concentrated in sectors
that are environmentally sensitive such as oil and gas exploration and hydropower provision.
Following a raft of measures from multilateral development banks and international
inancial institutions along with growing pressure from civil society organizations, China is
under pressure to demonstrate a commitment to addressing the environmental impacts of
its projects. This article examines the environmental implications of Chinese State-owned
Enterprises (CSOEs) and China’s Africa strategy in the energy sector. The main argument of
this paper is that environmental implications arising from Chinese state-owned investments
are diferent in renewable and non-renewable energy sector, and are better managed with
the presence of non-state actors in the industry.
Category: Article.
Keywords: Africa, China, energy, environment.
Introduction
China’s insatiable appetite for natural resources to fuel its domestic growth and satisfy its
energy needs has left an unparalleled and deepening footprint on the world’s environment
(Liu and Diamond, 2005; Mol, 20). Shortages of domestic commodities and global oil price
spikes have led China to increasingly turn to resource-rich regions such as Africa. Given the
scale and strategic importance of these resource deals much of the efort has fallen to Chinese
SOEs and the larger private TNCs. In turn, these irms, with huge capital and advanced
technology and skills, tend to invest in large-scale projects where the environmental impacts
are more detrimental, particularly in sectors such as mining and hydropower. Yet, there
are very few detailed case studies analysing the environmental outcomes of Chinese SOEs’
practices in Africa. At the same time, many African commentators noted with trepidation the
. The author would like to thank the ESRC for funding the projects (project number: RES-062-23-0487-
principal investigator Professor Giles Mohan and ES/J0320X/- principal investigator Dr Frauke Urban) and
Mr Stephan Stewart for reviewing the article.
© May Tan-Mullins
Published with the author’s permission, by Markoulakis Publications,
c/o The Hive, Maudslay Building, Burton Street, NG1 4BU, Nottingham, UK