Huawei will invest $430m over the next five years to build cloud computing infrastructure, support local software providers and train digital professionals in northern Africa.

The Shenzhen-based telecommunications specialist announced on September 28 that it would allocate $200m to set up the region’s first public cloud centre, offering more than 200 cloud services.

“To expedite intelligent transformation in northern Africa, Huawei will intensify its investments in technologies, ecosystems and talent,” said Terry He, Huawei’s president of northern Africa.

The new strategy seeks to integrate smart technologies, particularly artificial intelligence (AI), into various sectors like health, transportation, finance, agriculture and mining. Huawei said that Africa’s considerable green energy potential offers “an unparalleled opportunity in the AI era”. 

The new initiative, which will encompass 28 African countries north of the equator, aims to enhance inclusion and governmental management and bolster the attractiveness of African countries’ business and commercial climates.

An additional $200m was pledged by Huawei to support local software providers and channel partners. The remaining $30m will be used to train 10,000 local software developers and educate 100,000 digital professionals.

Chinese outbound greenfield FDI has reached an all-time high already this year, as companies have sought to gain entry to new markets, according to fDi Markets. Over the past two decades, Huawei has been among the 20 most active foreign investors in Africa by project number.

In July, the telecoms group opened an innovation centre in Johannesburg, South Africa. It will focus on helping develop the country’s digital infrastructure, boost 5G deployment and foster digitisation across South Africa’s industries.

“Africa represents a pivotal element of the company’s growth ambitions, underscoring its unwavering commitment to the continent's digital transformation,” said Huawei in a statement.

Huawei’s renewed focus on Africa comes after export bans and controls imposed by US and other Western governments, who claim the company’s equipment poses security risks and has the potential to be used for Chinese spying. 

Huawei’s sales and profit plummeted following the controls, but have recently made a marginal recovery. In the first half of 2023, Huawei saw revenues rise to Rmb310.9bn ($43bn), up by 3.1% on the same period last year.