American technology company IBM exits Nigeria, Ghana, and other key African markets, transferring its regional functions to MIBB, a subsidiary of Midis Group, a multinational IT and telecommunications conglomerate operating across Europe, the Middle East, and Africa.
This move comes as part of a new operating model that IBM will implement in select African countries, effective April 1, 2025.
MIBB will market and sell IBM’s products and services across 36 African countries, giving MIBB’s sales network direct access to IBM’s software, hardware, cloud, and consulting offerings.
This partnership is expected to boost innovation and growth in the region, with MIBB taking over the responsibility of IBM’s operations, support, and local customer relationships, the company stated in an email to TechCabal.
Having been in Nigeria for over 50 years, IBM was integral to the technology landscape, providing infrastructure and consulting services to critical industries such as banking, telecommunications, oil and gas, and government.
In particular, the company’s high-end storage and computing solutions were widely used by major banks like Zenith. However, increasing competition from companies like Dell and Huawei—both of which have expanded their footprint in Nigeria’s banking sector—has led to a shrinking client base for IBM.
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IBM revenue report in 2024
Beyond the challenges in Africa, IBM has faced financial difficulties globally. In 2024, the company reported a 2% decline in consulting revenue to $5.18 billion, while infrastructure sales dropped by 8%.
Despite these setbacks, IBM reported a 1% overall revenue increase, reaching $17.55 billion, driven by a 10% growth in software sales, which climbed to $7.92 billion. IBM also posted a net income of $2.92 billion in the fourth quarter and expects at least 5% revenue growth in 2025, bolstered by projected free cash flow of $13.5 billion.
Although IBM’s departure from West Africa marks the end of its direct operations in the region, the long-term impact on local businesses and government partnerships remains uncertain.
While the transition to MIBB may offer new opportunities for innovation and support, it also presents challenges for businesses that have relied on IBM’s products and services. The full effect of this shift will likely unfold over the coming months as the African tech ecosystem adjusts to the new operational model.
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