IBM Exits Nigeria and Key African Markets, Transfers Operations to MIBB

IBM, a global technology giant, is set to exit Nigeria, Ghana, and other key African markets, transferring its regional operations to MIBB, a subsidiary of the multinational IT and telecom conglomerate Midis Group. The transition, effective April 1, 2025, marks a significant shift in IBM’s presence on the continent after over five decades of operations.

What This Means for Africa’s Tech Landscape

IBM’s exit signals a shift in how global tech companies engage with Africa. By handing over its business operations to MIBB, IBM retains a market presence without direct local operations, relying on MIBB’s network to market and sell its software, hardware, cloud, and consulting services across 36 African countries.

For businesses that have relied on IBM’s infrastructure—especially in banking, telecommunications, and oil & gas—this change raises questions about continuity and support. MIBB will now manage local customer relationships, but whether it can match IBM’s level of service and innovation remains to be seen.

Why Is IBM Leaving?

IBM’s decision follows increasing competition from rivals like Dell and Huawei, both of which have strengthened their foothold in Nigeria’s banking sector. With IBM’s client base shrinking and global financial struggles mounting, the company is restructuring its African operations to improve efficiency.

In 2024, IBM reported a 2% decline in consulting revenue ($5.18 billion) and an 8% drop in infrastructure sales, though software revenue grew by 10% to $7.92 billion. The company’s overall revenue in Q4 2024 reached $17.55 billion, with a net income of $2.92 billion. While IBM expects at least 5% revenue growth in 2025, the company is increasingly focusing on high-margin software and AI-driven solutions.

The Road Ahead for MIBB and African Enterprises

As MIBB takes over, businesses must navigate the transition. While MIBB’s expanded sales network offers new opportunities for innovation, some clients may reconsider their technology stack, especially if IBM’s customer service and product support become less accessible.

For Africa’s broader tech ecosystem, this transition underscores a growing trend: international tech giants are shifting from direct local operations to regional partnerships. Whether this model benefits African businesses in the long run remains an open question.

What do you think? Will IBM’s exit leave a gap in the market, or will MIBB successfully maintain and grow its footprint?