Connect with us

Business

US to Lend Nearly $100m to Africell in Bid to Counter Huawei’s Influence in Africa

Published

on

Share

 

The administration of US President Donald Trump is preparing to provide nearly $100 million in financing to Africell, the only American-owned mainstream mobile telecommunications operator in Africa, in a move aimed at expanding US technology and challenging China’s dominance of the continent’s telecommunications infrastructure.

The financing will come through the US Export-Import Bank (EXIM) and will enable Africell to invest in advanced mobile network technology supplied by American and allied companies, according to a draft announcement reviewed by Reuters.

Africell Chief Executive Officer Ziad Dalloul said the company was pleased to work with EXIM to introduce what he described as more trusted and secure communications infrastructure across its African markets.

The planned loan forms part of Washington’s broader effort to increase the use of US technology overseas and reduce reliance on Chinese telecommunications equipment, particularly equipment supplied by Huawei.

Huawei has established a strong position across Africa’s telecommunications sector. According to Counterpoint Research data cited by Reuters, the Chinese technology giant accounts for about 52 per cent of Africa’s 5G infrastructure market.

The United States has for years raised national-security concerns over Huawei’s telecommunications equipment, arguing that Chinese technology could potentially expose sensitive communications and data to Beijing. Huawei has repeatedly denied allegations that its equipment is used for espionage.

Founded in 2001, Africell operates in Angola, The Gambia, the Democratic Republic of Congo and Sierra Leone, serving about 15 million customers across the four countries, according to Reuters.

The company has already worked with several major US and Western technology companies, including HP, Dell and Oracle, while Nokia has also supplied technology for some of its operations.

See also  China's New AI Model Halts New Subscriptions as Demand Swamps Capacity

The latest proposed financing would not be Africell’s first major US-backed investment. The company received a $100 million loan from the US Overseas Private Investment Corporation in 2018 to expand its communications infrastructure. OPIC was later replaced by the US International Development Finance Corporation.

The Trump administration’s latest move is also linked to a 2025 executive order directing US agencies to promote American technology abroad, including in areas such as artificial intelligence, cloud computing, data centres and networking.

The planned Africell financing underscores the growing competition between Washington and Beijing for influence over Africa’s digital infrastructure.

China has become a major provider of telecommunications equipment across the continent, with Huawei playing a particularly significant role in building mobile networks. For Washington, expanding the presence of American and allied technology is therefore both an economic opportunity and a strategic priority.

The move comes as the US continues its wider campaign to restrict Huawei’s access to American technology and limit the company’s global expansion. Huawei is currently also facing a US criminal trial over allegations including bank fraud, sanctions violations and theft of trade secrets, allegations the company denies.

For African countries, the competition could bring additional investment and technological choices, but it also places telecommunications infrastructure at the centre of the broader geopolitical rivalry between the world’s two largest economies.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *