Stakeholder Participation in Chinese Investment Projects: Implications for Environmental and Social Sustainability in Africa

China has become Africa's largest infrastructure financier, yet concerns persist regarding the environmental and social (E&S) impacts of its overseas projects. This study examines the role of stakeholder engagement in shaping E&S outcomes across three Chinese special economic zones (SEZs) in Egypt, Nigeria, and Ethiopia. Leveraging primary data collected from geospatial analysis, stakeholder surveys and interviews, we uncovered significant E&S risks despite improvements in Chinese E&S standards. A key finding is that proactive engagement by local communities is pivotal for enhancing project outcomes, while Chinese developers often prioritize host government relationships and profits over meaningful community consultations. This reflects a “money and power win-win” paradigm, where Chinese investors adhere only to minimum host country legal E&S requirements, overlooking officially endorsed Green Belt and Road Initiative (BRI) guidelines. However, we found that where local communities have mobilized to force participation, accountability and outcomes improve, as seen in Nigeria. Yet such local activism is contingent on the political context, being lacking in Egypt and Ethiopia due to autocratic suppression. Our analysis advances the literature by uncovering the bargaining dynamics among Chinese developers, host governments, and communities throughout project cycles. We also contribute to environmental governance literature by highlighting the tension between sustainable development and employment generation, showing how community exclusion leads to suboptimal E&S performance while participation enhances standards and local benefits. Our findings demonstrate that integrating stakeholders is crucial for balancing priorities, protecting rights, achieving public endorsement, and realizing China's risk management ambitions.