IBM, the American tech giant, is set to withdraw from Nigeria, Ghana, and other key West African markets, transferring its regional operations to MIBB, a subsidiary of the Midis Group. This strategic transition will take effect on April 1, 2025, as part of IBM’s efforts to streamline its business model across select African countries.
MIBB will assume control of IBM’s operations in 36 African nations, overseeing sales, customer support, and local partnerships. The company will also manage IBM’s extensive portfolio, including software, hardware, cloud computing, and consulting services.
For over 50 years, IBM has been a cornerstone in Nigeria’s tech landscape, providing critical infrastructure to banking, telecommunications, oil and gas, and government sectors. Major Nigerian banks, like the Zenith Bank, have relied heavily on IBM’s high-end storage and computing systems. However, growing competition from global tech players like Dell and Huawei has eroded IBM’s market share in the region, particularly within the financial sector.
Beyond Africa, IBM has been navigating financial headwinds globally. In 2024, the company’s consulting revenue dipped by 2% to $5.18 billion, while infrastructure sales plummeted by 8%. Despite these declines, IBM recorded a modest 1% revenue growth, reaching $17.55 billion, largely driven by a 10% increase in software sales to $7.92 billion.
IBM’s withdrawal raises questions about the long-term effects on businesses and government partnerships in West Africa. While MIBB’s takeover could introduce new opportunities for innovation and service continuity, concerns remain over the transition’s impact on enterprises that have relied on IBM’s expertise for decades. The full ramifications of this strategic shift will become clearer in the months ahead as the region’s tech industry adapts to the new operational framework.
