Trump Administration to Lend Africell Nearly $100 Million to Counter Huawei

Trump administration to lend nearly $100 million to Africell to compete with Huawei

September 11

Reuters reports that the Donald Trump administration will provide nearly $100 million in loans to American-owned telecommunications company Africell to counter the expansion of Chinese telecommunications company Huawei in Africa.

The loan, to be issued by the U.S. Export-Import Bank (EXIM), will be used by Africell to invest in the latest mobile network technologies produced by the United States and allied countries, it is said.

Africell's CEO has also stated that they will use technologies from the United States and allied countries to build reliable and secure communications infrastructure.

Since his first presidential term, the Trump administration has carried out the "Clean Network" initiative to restrict and remove Chinese telecommunications technologies, and is continuing similar policies in his second presidential term.

Due to concerns that user data could be used for espionage, the U.S. government has also imposed severe sanctions on Chinese-owned Huawei. Huawei has denied those allegations.

Africell, founded in 2001, currently provides services to approximately 15 million users in Angola, Gambia, the Democratic Republic of the Congo, and Sierra Leone.

Africell also received a $100 million loan from the U.S. government in 2018 to expand communications infrastructure.

According to Counterpoint Research, Huawei holds approximately 52 percent share of Africa's 5G infrastructure market.

Ref & Photo; Reuters

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