U.S. to Provide $100M Loan to Africell to Counter Huawei in Africa

In a move underscoring intensifying U.S.-China competition for technological influence in Africa, the U.S. government intends to provide a loan of approximately $100 million to Africell, the sole U.S.-owned telecommunications firm active on the continent. The funding aims to support the company’s deployment of mobile network infrastructure built on American and allied-country technologies.

Background of the loan and strategic context

According to a draft press release reviewed by Reuters and a source familiar with the matter, the Trump administration plans to extend the loan through the U.S. Export-Import Bank (EXIM). The draft states the EXIM financing “will enable Africell to invest in the latest mobile network technologies from U.S. and allied-country suppliers.”

The loan forms part of a broader U.S. campaign to promote alternative telecommunications equipment to Huawei’s across international markets. It follows an executive order issued by President Donald Trump mandating U.S. federal agencies to advance the use of American technology abroad—including in artificial intelligence, data center storage, cloud services, and network technologies.

Africell’s operations and prior U.S. support

Africell was founded in 2001. Its website states the company has acquired technologies from firms including HP, Nokia, Dell, and Oracle to operate a new data center in Angola. The company serves 15 million customers across Angola, The Gambia, the Democratic Republic of the Congo, and Sierra Leone.

In 2018, Africell received a $100 million loan from the U.S. International Development Finance Corporation—then known as the U.S. Overseas Private Investment Corporation—to expand its telecommunications infrastructure.

U.S. diplomatic messaging on Huawei

During a 2022 visit to Africell’s offices in Angola, Wendy Sherman—then U.S. Deputy Secretary of State under President Joe Biden—stated that countries selecting Huawei “may effectively cede sovereignty and hand over their data to another country.”

The Trump administration launched the “Clean Network” initiative during its first term to exclude Chinese telecommunications equipment, applications, and service providers from U.S. and allied critical infrastructure. Similar efforts continued into its second term.

Regulatory and market landscape

The U.S. has imposed strict sanctions on Huawei over allegations the company could conduct surveillance on users—a claim Huawei denies. According to Counterpoint Research data, Huawei holds roughly 52% of Africa’s 5G infrastructure market share.

Ziad Al-Dulul, Chief Executive Officer of Africell Holding Limited, said in the draft statement: “We are pleased to work with EXIM to deliver more reliable and secure communications infrastructure in the markets where we operate.”

Neither Huawei nor the Chinese embassy has responded to requests for comment.