Tech Giant, IBM Announces Exit From Nigeria And Ghana, Others African Nations

IBM Announces Exit from Nigeria and Ghana, Transfers Operations to MIBB

International Business Machines (IBM) has revealed plans to exit Nigeria, Ghana, and other key African markets, transferring its regional operations to MIBB, a subsidiary of the multinational conglomerate Midis Group. The transition will take effect from 1 April 2025 as part of a new operating model in select African countries.

MIBB will assume responsibility for marketing and selling IBM’s range of products and services across 36 African nations. This includes providing direct access to IBM’s software, hardware, cloud solutions, and consulting services. According to an email sent to TechCabal, MIBB will also oversee operations, support, and customer relationships in the region.

IBM has had a significant presence in Nigeria for over five decades, playing a crucial role in the country’s technology landscape. The company provided infrastructure and consulting services to key sectors, including banking, telecommunications, oil and gas, and government. Its high-end storage and computing solutions were especially popular among financial institutions such as Zenith Bank.

However, IBM’s market share in Nigeria has declined in recent years due to growing competition from companies like Dell and Huawei, which have increased their presence in the banking sector.

On the global front, IBM has been facing financial challenges. In 2024, the company reported a 2% drop in consulting revenue, totaling 5.18 billion USD, while infrastructure sales decreased by 8%. Despite this, IBM’s overall revenue increased by 1%, reaching 17.55 billion USD, largely driven by a 10% growth in software sales, which amounted to 7.92 billion USD. The company also posted a net income of 2.92 billion USD for the fourth quarter and expects a minimum of 5% revenue growth in 2025, buoyed by a projected free cash flow of 13.5 billion USD.

IBM’s exit from West Africa marks the end of its direct operations in the region, creating uncertainty about the long-term impact on local businesses and government partnerships. While MIBB’s takeover may offer new opportunities for innovation and support, businesses that rely on IBM’s services will need to adjust to the changes. The full effects of this transition will become clearer in the months ahead as the African technology landscape adapts to the new operational model.

Source: The Bureau Newspaper