Global technology innovator, IBM, has officially ceased its operations in Nigeria, Ghana, and several other significant markets across Africa. This strategic decision involves the transfer of its regional functions to MIBB, a subsidiary of the Midis Group, a multinational conglomerate specializing in IT and telecommunications with a presence across Europe, the Middle East, and Africa. This transition is part of a broader initiative by IBM to implement a new operational model in select African countries, which will take effect on April 1, 2025.
Under this new arrangement, MIBB will be responsible for marketing and selling IBM’s extensive range of products and services across 36 African nations. This partnership will enable MIBB’s sales network to gain direct access to IBM’s offerings, which include software, hardware, cloud solutions, and consulting services. IBM anticipates that this collaboration will foster innovation and stimulate growth within the region, as MIBB assumes responsibility for managing IBM’s operations, providing support, and nurturing local customer relationships.
IBM has had a significant presence in Nigeria for over five decades, playing a crucial role in shaping the technology landscape of the country. The company has been instrumental in delivering infrastructure and consulting services to vital sectors such as banking, telecommunications, oil and gas, and government. Notably, IBM’s advanced storage and computing solutions have been widely adopted by major financial institutions, including Zenith Bank. However, the company has faced increasing competition from rivals like Dell and Huawei, both of which have expanded their influence in Nigeria’s banking sector, resulting in a diminishing client base for IBM.
In addition to the challenges faced in the African market, IBM has been grappling with financial difficulties on a global scale. In 2024, the company reported a 2% decline in consulting revenue, totaling $5.18 billion, while infrastructure sales experienced an 8% drop. Despite these challenges, IBM managed to achieve a 1% overall revenue increase, reaching $17.55 billion, primarily driven by a robust 10% growth in software sales, which climbed to $7.92 billion. Furthermore, IBM reported a net income of $2.92 billion in the fourth quarter and is projecting at least 5% revenue growth for 2025, supported by an anticipated free cash flow of $13.5 billion.
While IBM’s exit from West Africa signifies the end of its direct operations in the region, the long-term implications for local businesses and government partnerships remain uncertain. The transition to MIBB may present new avenues for innovation and enhanced support; however, it also poses challenges for businesses that have relied heavily on IBM’s products and services. The full impact of this operational shift is expected to unfold in the coming months as the African technology ecosystem adapts to this new model.
