L1 NEWS | BUSINESS & TECHNOLOGY
The United States government has approved a US$99.6 million loan to Africell, the U.S.-owned African telecommunications operator, in a move that Washington says will expand American technology in Africa and strengthen secure communications infrastructure.
The financing is being provided through the U.S. Export-Import Bank (EXIM) and will support Africell’s purchase of American and European telecommunications technology, particularly for its operations in Angola. Africell also operates in Sierra Leone, The Gambia and the Democratic Republic of Congo.
The deal is significant beyond Africell itself. It forms part of a broader U.S. effort to compete with China’s growing influence over Africa’s telecommunications infrastructure, particularly equipment supplied by Chinese technology giant Huawei.
What happened?
The financing, announced Friday, provides Africell with US$99.6 million through EXIM.
Africell said the financing will allow it to invest specifically in American and European telecommunications technology for its Angolan operations. The company said the investment is intended to strengthen its network while supporting American employment and technology exports.
Reuters, which first reported the financing, said the loan will enable Africell to invest in the latest mobile-network technology from American and allied suppliers.
Africell currently has more than 15 million subscribers, operates more than 2,600 towers and reports more than US$400 million in annual revenue. Its markets are Angola, the Democratic Republic of Congo, Sierra Leone and The Gambia.
Liberia is not currently an Africell operating market.
Why Washington is backing Africell
The financing is part of a much larger geopolitical contest over Africa’s digital infrastructure.
Huawei is a dominant supplier of telecommunications equipment across Africa. Reuters, citing Counterpoint Research, reports that Huawei has approximately 52% of Africa’s 5G infrastructure market.
Washington has for years raised national-security concerns about Huawei equipment and has encouraged countries and allies to reduce dependence on Chinese telecommunications technology.
Huawei has denied U.S. allegations concerning security risks and other alleged misconduct.
The Africell transaction therefore represents more than a commercial loan.
It is also an effort to ensure that U.S. and allied technology companies capture a larger share of Africa’s rapidly expanding digital infrastructure market.
What does Africell actually get?
The financing will support the purchase of telecommunications technology from American and European suppliers.
Africell has previously worked with companies including HP, Nokia, Dell and Oracle, including technology associated with a data center in Angola.
Africell’s own corporate information shows that the company is expanding its network and digital services across its four African markets, including mobile money and high-speed connectivity.
The company says it has more than 15 million subscribers and operates across four countries.
What does the deal mean for Liberia?
This is where the story becomes relevant to L1’s audience.
The US$99.6 million is not a Liberian investment.
Africell does not currently operate a mobile network in Liberia, and the announced financing is specifically tied to technology investment in Angola.
Therefore, L1 should not headline this as a US$100 million investment coming to Liberia or West Africa generally.
But the deal has important implications for Liberia’s emerging digital economy.
Liberia is pursuing greater digitalization of government services, financial transactions, identification systems, telecommunications and technology-based businesses.
