These employees reportedly helped government officials in these two companies to intercept and bypass encrypted chats as well as to track the locations of political opponents.
The report said there was no evidence that Huawei executives in China were aware of or sanctioned the alleged espionage activities of its employees in these countries.
Additionally, there was no evidence that the Huawei employees alleged to be aiding cybersecurity forces in these countries were conducting spying activity on behalf of the Chinese government.
In a statement to CNBC, Huawei refuted the allegations in the report, stating that it has never engaged in hacking activities.
"After a thorough and detailed internal investigation on the points raised by the WSJ's reporting team, Huawei rejects completely these unfounded and inaccurate allegations against our business operations in Algeria, Uganda and Zambia," Huawei said.
"Our internal investigation shows clearly that Huawei and its employees have not been engaged in any of the activities alleged. We have neither the contracts nor the capabilities to do so."
Huawei Update
Huawei has provided MyBroadband with a statement rejecting the Wall Street Journal's allegations, labelling them "inaccurate" and "unfounded".
"Huawei completely rejects the Wall Street Journal's unfounded and inaccurate allegations against its business operations in Algeria, Uganda, and Zambia," the company said.
"Huawei's code of business conduct prohibits any employees from undertaking any activities that would compromise our customers or end-users' data or privacy or that would breach any laws."
"Huawei prides itself on its compliance with the local laws and regulations in all markets where it operates and will defend its reputation robustly in the face of such baseless allegations," Huawei said.