Environmental impact assessment (EIA) has evolved and become part of major project requirements in many countries, since its introduction in the United States in 1970. However, its contribution to sustainable development and reduction in poverty of people affected by projects has not been assessed in developing countries, especially in Africa. Therefore, this review article examines environmental laws and institutions in selected African countries. Through comparative study of EIA laws, procedures and practices, their effects on sustainable development and reduction in poverty are discussed. The study revealed that successful integration of environmental impact assessments into planning and decision-making processes in these countries has not yet been realised, for its application is mostly limited to the project level. However, Africa appears to be on the right footing towards sound environmental protection and resource management, butlack of strong institutions and human resource capacity, rapid population growth, lack of direct investment in project communities, illiteracy and corruption remain the greatest threats to the success of EIA. It recommends that corporate social responsibility, specifying a fixed percentage of profit for local development, be made part of EIAs. It enjoins that a critical mass of a project's community be empowered to actively participate in the early phases of the EIA process to improve benefits to communities and society at large. Sustainable development could thus be achieved atthe project level when businesses and communities cooperate for their mutual benefits.