🇺🇸 US Approves $99.6m Africell Loan to Counter Huawei’s Telecom Dominance in Africa

The United States has approved a $99.6 million loan to Africell, the only U.S.-owned mobile telecommunications operator in Africa, as Washington moves to expand American technology and challenge China's dominance in the continent's telecoms sector. The financing was provided through the U.S. Export-Import Bank (EXIM Bank) and will enable Africell to invest in telecommunications technology from American and European suppliers. Africell said the funding would support its investment in American and European telecommunications technology, particularly for its operations in Angola. The company also operates in the Democratic Republic of Congo, Sierra Leone and The Gambia, serving approximately 15 million customers across its markets. US Seeks to Challenge Huawei The financing comes as Washington intensifies efforts to reduce China's influence over telecommunications infrastructure in Africa. Chinese technology giant Huawei is a major supplier of mobile-network infrastructure across the continent. Reuters, citing Counterpoint Research, reported that Huawei holds approximately 52% of Africa's 5G infrastructure market. The U.S. has repeatedly raised national-security concerns about Huawei, including allegations that Chinese telecommunications equipment could potentially be used for espionage. Huawei has consistently denied such allegations. The latest financing forms part of Washington's broader effort to encourage countries and companies overseas to adopt telecommunications and other technology supplied by the United States and its allies. Africell Expands American Technology Footprint Africell's Chief Executive Officer, Ziad Dalloul, said the company welcomed the partnership with the U.S. Export-Import Bank, saying it would help introduce more secure communications infrastructure into its markets. The company has previously received significant U.S. government-backed financing. In 2018, Africell secured a $100 million loan from the Overseas Private Investment Corporation, which was later incorporated into the U.S. International Development Finance Corporation. The latest financing therefore represents another major U.S. financial commitment to Africell's expansion across Africa. China Pushes Back China has rejected Washington's efforts to frame Chinese investment in Africa primarily through a national-security lens. The Chinese embassy in Washington defended Chinese investment on the continent, arguing that it has contributed to Africa's economic development and has been welcomed by local populations. Beijing urged the United States to focus on supporting African development rather than using technology competition to undermine China-Africa cooperation. The dispute reflects a wider strategic competition between Washington and Beijing over telecommunications, artificial intelligence, critical minerals, digital infrastructure and other technologies across Africa. Why the Deal Matters for Africa The Africell financing could have implications beyond the company's immediate operations. Telecommunications infrastructure is increasingly viewed as a strategic asset because mobile networks underpin banking, digital payments, e-commerce, cloud services, government services and access to information. For African countries, the growing competition between American, European and Chinese technology suppliers could create additional choices for network operators while also intensifying geopolitical pressure over which technology standards and suppliers countries adopt. The U.S. loan to Africell therefore represents more than a commercial transaction. It is part of a broader contest for Africa's digital infrastructure and technological influence. Primary verified sources: Reuters report · Associated Press report · U.S. DFC background on Africell financing