IBM, the American technology giant, has announced the halting of its operations in Nigeria, Ghana, and other key African markets, shifting its regional responsibilities to MIBB, a subsidiary of the Midis Group. This transition, effective April 1, 2025, is part of IBM’s new operating model in some African countries.
Under this arrangement, MIBB will take over the marketing, sales, and customer support for IBM’s software, hardware, cloud, and consulting services across 36 African countries. This partnership aims to drive innovation and growth in the region, ensuring continuity for IBM’s existing clients while expanding MIBB’s footprint in Africa’s IT sector.
Having operated in Nigeria for over 50 years, IBM played a critical role in shaping the technology ecosystem, providing infrastructure and consulting services to key industries such as banking, telecommunications, oil and gas, and government. Its high-end computing and storage solutions were widely used by major banks, including Zenith Bank. However, IBM has faced growing competition from tech giants like Dell and Huawei, both of which have aggressively expanded in Nigeria’s banking sector. This increased competition, coupled with a shrinking client base, likely contributed to the company’s decision to withdraw from direct operations in the region.
IBM’s exit from West Africa coincides with broader financial challenges on a global scale. In 2024, the company reported a 2% decline in consulting revenue to $5.18 billion, an 8% drop in infrastructure sales, a 1% overall revenue increase, reaching $17.55 billion, a 10% growth in software sales, totaling $7.92 billion and a net income of $2.92 billion in the third quarter of 2024.
Despite setbacks in some business segments, IBM remains optimistic about 2025, projecting at least 5% revenue growth and a free cash flow of $13.5 billion.
While IBM’s exit from direct operations in West Africa marks the end of an era, its partnership with MIBB could present both opportunities and challenges for businesses that rely on IBM’s technology.
On one hand, MIBB’s regional presence and expertise may ensure continued support for IBM’s enterprise clients. On the other hand, businesses that depended on IBM’s direct services and technical expertise may face adjustment difficulties as they navigate the new operational model.
The full impact of this transition will become clearer in the coming months as Africa’s technology and business landscape adapts to IBM’s shift in strategy.
