Quick Read: IBM has ended its operations in Nigeria, Ghana, and other key African markets, transferring them to MIBB, a subsidiary of Midis Group. MIBB will now handle IBM’s software, hardware, cloud, and consulting services in 36 African countries. This move comes amid IBM’s global financial challenges and increasing competition in Africa. The long-term impact on local businesses remains uncertain as the region adapts to the transition.
IBM Exits Nigeria and Key African Markets
IBM has officially ended its operations in Nigeria, Ghana, and other key African markets. The company has transferred its regional functions to MIBB, a subsidiary of Midis Group. Midis Group is a multinational IT and telecommunications conglomerate with operations across Europe, the Middle East, and Africa.
This strategic shift is part of IBM’s new operating model, set to take effect on April 1, 2025, in select African countries.
MIBB to Take Over IBM’s Offerings
Under the new arrangement, MIBB will market and sell IBM’s products and services across 36 African countries. This transition will give MIBB direct access to IBM’s software, hardware, cloud, and consulting offerings.
IBM stated that MIBB will also assume responsibility for IBM’s operations, support, and local customer relationships. The partnership is expected to drive innovation and growth in the region.
IBM’s Legacy in Nigeria and Market Challenges
IBM has been a key player in Nigeria’s tech ecosystem for over 50 years. The company provided infrastructure and consulting services to major industries, including banking, telecommunications, oil and gas, and government sectors. Many major banks, such as Zenith, relied on IBM’s high-end storage and computing solutions.
However, IBM has faced growing competition from companies like Dell and Huawei, both of which have expanded their presence in Nigeria’s banking sector. This increased competition contributed to IBM’s shrinking client base in the region.
IBM’s Global Financial Struggles
IBM’s exit from Africa comes amid financial challenges on a global scale. In 2024, the company reported a 2% decline in consulting revenue, amounting to $5.18 billion, while infrastructure sales dropped by 8%. Despite these setbacks, IBM achieved a 1% overall revenue increase, reaching $17.55 billion, primarily driven by a 10% growth in software sales, which rose to $7.92 billion.
The company also reported a net income of $2.92 billion in the fourth quarter of 2024 and projects at least 5% revenue growth in 2025, with a projected free cash flow of $13.5 billion.
The Future of IBM’s Presence in Africa
While IBM’s departure from West Africa signals the end of its direct operations, the long-term impact on businesses and government partnerships remains uncertain. The transition to MIBB could introduce new opportunities for innovation and support, but it also presents challenges for companies that have relied on IBM’s products and services for decades.
As the African tech ecosystem adapts to this new operational model, businesses will closely monitor how MIBB manages the transition and whether it can maintain IBM’s legacy in the region.
