The U.S. government’s Export-Import Bank has approved a $99.6 million loan to Africell, a U.S.-owned cell phone network operator, to expand its operations in Angola and strengthen American technology presence in Africa.
The loan, announced by Africell on Friday, marks the first major U.S. government financing for a U.S.-owned telecom network in Africa. Africell operates in Angola, Congo, Sierra Leone, and Gambia, making it the continent’s only U.S.-owned mobile network operator.
Africell’s stated goals
In a statement, Africell said the loan would boost U.S.-based employment in the telecommunications sector and strengthen American technology leadership abroad. The company plans to use the funds to invest in American and European technology for its Angola operations, including network infrastructure and equipment.
Huawei’s dominance in Africa
The funding comes as China’s Huawei remains the dominant supplier of telecommunications equipment in Africa, estimated to have provided more than half of the continent’s 4G and 5G network infrastructure. Huawei’s market position has drawn scrutiny from U.S. officials over national security concerns, particularly regarding potential espionage risks and data privacy.
U.S. policy response
The Trump administration has raised national security concerns about Huawei since its first term, leading to efforts to counter China’s influence in Africa. These include lobbying Western allies to avoid Huawei’s products in high-speed wireless networks and pursuing legal action against the company.
Legal challenges against Huawei
This week, a criminal racketeering trial against Huawei opened in New York, where U.S. prosecutors have accused the company of stealing technology, plotting to steal trade secrets, and committing wire and bank fraud. Huawei has denied the allegations, calling them “demonstrably false.”
Broader U.S.-China competition in Africa
Beyond telecoms, the U.S. has sought to counter China’s influence in Africa through investments in critical minerals and rare earth elements, which are essential for electronics, new technologies, and defense systems. The Africell loan aligns with this broader strategy to expand American economic and technological presence on the continent.