Panayotou further notes the failure to provide evidence that the occurrence of lax environmental standards in emerging economies leads to FDI, on account of the fact that investment decisions by manufacturing plants and other multinationals to invest in countries is based on factors such as political stability, favourable economic policy, labour quality, and infrastructural developments. It is therefore clear that economic development is not without costs. In fact, the much desired economic growth if not carefully balanced with the need to protect the environment may result in permanent adverse effects on the environment for a country and the world. Specific to Africa, the application of these models and research findings lends itself to further caution. With the continental economy still facing numerous problems to the extent that most national economies are yet to provide sufficiently for their nationals, it is unlikely that a point would soon be reached in Africa’s economic growth, at which adequate resources become available for commitment to environmental concerns. In other words, thought needs to be given to the social background against which utilisation of resources from economic growth will depend. The various human and social challenges such as poverty and epidemics confronting the continent may well explain the relatively low emphasis by policy makers on environmental concerns when compared to their western counterparts. That said, however, it must be recognised that in respect to the ecosystem, the globe is one and benefits that accrue to one corner due to environmental preservation, accrue to the entire globe.

Although Africa’s exports at the global level are very small at about 2%, the concentration of the exports in the extraction sector is cause for concern on the environment. It means that the more Africa is integrated into the global economy the more the consequences for extraction activities on the environment will become pronounced, unless mitigating measures are taken. In addition, multinational businesses are quickly realising the existence of less strenuous environmental standards in most of the African countries, which themselves are desperately seeking for Foreign Direct Investment (FDI). As a result, these businesses are rushing to invest in these economies and realise profits but may never be available to attend to the possible redress of negative effects their business activities leave on the environment. In this respect, as African policy makers and other stakeholders pursue economic growth, it is important to appreciate the benefits presented by the natural ecosystems and diverse forms of wildlife and other species. Despite the economic benefits of constructing roads, mining areas, and farming blocks, there exists a real threat of the destruction of large areas of natural habitats. The emergence of industries and the effect of urbanisation in Africa, has largely contributed towards increased air pollution in many towns and cities. The incidence of smog and respiratory diseases in these areas has increased (UNEP, 2003), and is set to continue this trend in the foreseeable future. Africa does not contribute significantly to the emission of pollutants arising mainly from combustion in complex chemical processes of industries.