US Backs Africell With Nearly $100m as Technology Rivalry Moves Deeper Into Africa

WASHINGTON – The United States has approved nearly US$100 million in financing for Africell to expand telecommunications infrastructure across Africa, intensifying Washington’s technology competition with China as both powers seek greater influence over the networks supporting the continent’s digital economy.

The US Export-Import Bank financing will support Africell’s purchase of telecommunications equipment from American and allied suppliers. The company operates mobile networks in Angola, the Democratic Republic of Congo, Sierra Leone and The Gambia, serving about 15 million subscribers across the four markets.

The US Africell investment carries significance beyond the expansion of one mobile operator. Washington increasingly views telecommunications networks as strategic infrastructure as competition with China extends into mobile connectivity, artificial intelligence, cloud computing, data centres and cybersecurity.

Huawei already holds a powerful position across Africa. The Chinese technology company has spent decades supplying telecommunications infrastructure to governments and mobile operators, building extensive relationships across the continent. Reuters estimates that Huawei accounts for about 52% of Africa’s 5G infrastructure market.

Washington has repeatedly raised security concerns about Huawei equipment in critical communications networks and wants countries to adopt technology from American and allied suppliers. Huawei rejects allegations that its equipment creates an espionage risk, while Beijing accuses the United States of politicising technology competition.

African governments increasingly find themselves navigating those competing positions while trying to expand affordable connectivity. Rising smartphone use, population growth and demand for digital services require enormous investment in telecommunications infrastructure across the continent.

Mobile networks now support far more than phone calls. They carry financial transactions, government services, business communications and digital platforms, while also providing essential infrastructure for cloud computing and emerging artificial intelligence services.

Africell gives Washington a relatively unusual platform in a market where American mobile operators have limited direct presence. The company has expanded particularly strongly in Angola since entering the market in 2022 and now serves more than seven million customers there.

Its wider footprint stretches across Southern, Central and West Africa. Africell reports annual data traffic growth of about 45%, reflecting the rapid increase in demand for mobile connectivity across its markets.

US government support for the operator predates the latest financing. The US International Development Finance Corporation provided Africell with a US$100 million facility in 2019 to support network expansion. Africell recently repaid the remaining balance three years ahead of schedule.

The new financing comes as Washington tries to increase the international presence of American technology. Telecommunications has become central to that strategy because network equipment and software can remain embedded in national communications systems for many years.

African procurement decisions, however, will depend on more than geopolitical pressure. Governments and mobile operators need affordable equipment, reliable networks and financing that allows them to expand coverage quickly.

Chinese companies have built their position partly by meeting those needs. Huawei has combined competitive equipment with financing and long-term relationships in markets where operators face high infrastructure costs.

American-backed alternatives will therefore need to compete on price, reliability, financing and deployment speed if they want to capture a larger share of Africa’s telecommunications market.

Greater competition could benefit African economies if it creates more financing options, reduces costs and accelerates network expansion. It could also give governments greater negotiating power when selecting technology partners.

The opportunity comes with risks. Africa’s digital infrastructure could increasingly become a battleground between competing foreign powers rather than a foundation for the continent’s own technological development.

African governments must balance those external interests against domestic priorities such as affordable internet access, cybersecurity, data governance, local skills and technological independence.

Artificial intelligence makes those choices even more important. AI systems depend on reliable connectivity, data centres, cloud infrastructure and significant computing capacity. Decisions made about telecommunications infrastructure today will influence how African digital economies develop over the coming decade.

The US-backed Lobito Corridor shows how technology competition increasingly connects with wider economic strategy. Washington has supported transport infrastructure linking Angola, Zambia and DR Congo as it seeks stronger relationships across a region holding some of the world’s most important critical mineral deposits.

Africell has positioned itself as a digital connectivity partner to the corridor, linking telecommunications with growing investment in transport, minerals and energy across Central and Southern Africa.

The connection reflects a broader shift in global competition across the continent. Railways, mineral supply chains, mobile networks, data centres and artificial intelligence increasingly form parts of the same strategic landscape.

African countries can use that competition to negotiate stronger outcomes. Governments can demand better financing, wider network coverage, local skills development, technology transfer and stronger cybersecurity from companies seeking access to their markets.

The nearly US$100 million US Africell investment remains relatively small compared with the capital Africa needs to close its digital infrastructure gap. Its strategic significance is much larger because Washington is putting public financing behind an American-owned African telecom operator as it challenges China’s established position.

Africa’s interests should not depend on whether American or Chinese technology ultimately wins that competition. The more important measure will be whether greater rivalry delivers affordable connectivity, stronger digital security and more technological capability within African economies.

As global competition moves deeper into Africa’s communications infrastructure, the continent has an opportunity to become more than a market contested by foreign powers. African governments can use that competition to secure the investment, skills and infrastructure needed to build a stronger digital economy on their own terms.

Fence Africa24
Fence Africa24
Fence Africa24 delivers Pan-African news and analysis with credible, Africa-led reporting. Explore context-rich coverage of governance, business, society, culture, and the ideas shaping Africa’s future.

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