American technology giant IBM has announced the cessation of its operations in Nigeria, Ghana, and other key African markets, transferring its regional functions to MIBB, a subsidiary of Midis Group. This strategic move, effective April 1, 2025, is part of IBM’s new operating model aimed at select African countries.
Under this partnership, MIBB will market and sell IBM’s products and services across 36 African nations, providing its sales network with direct access to IBM’s software, hardware, cloud, and consulting offerings. MIBB will foster innovation and growth in the region, taking responsibility for IBM’s operations, support, and local customer relationships, as stated in an email to TechCabal.
IBM has been a significant player in Nigeria for over 50 years, contributing to the technology landscape by providing infrastructure and consulting services to critical industries, including banking, telecommunications, oil and gas, and government. The company’s advanced storage and computing solutions have been widely utilized by major banks, such as Zenith. However, increasing competition from firms like Dell and Huawei, both of which have expanded their presence in Nigeria’s banking sector, has resulted in a diminishing client base for IBM.
Beyond the challenges faced in Africa, IBM has encountered financial difficulties 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 challenges, IBM recorded a 1% overall revenue increase, reaching $17.55 billion, driven by a 10% growth in software sales, which climbed to $7.92 billion. Additionally, IBM reported a net income of $2.92 billion in the fourth quarter and anticipates at least 5% revenue growth in 2025, supported by a projected 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 opportunities for innovation and support, but it also poses challenges for businesses that have depended on IBM’s products and services. The full impact of this shift is expected to unfold in the coming months as the African tech ecosystem adapts to the new operational model.
