The American technology company IBM has decided to withdraw from Nigeria, Ghana, and other key African markets.
The company has transferred its regional functions to MIBB, a subsidiary of the telecommunications and IT holding Midis Group. This move is part of IBM’s new operational model, which will be implemented in selected African countries starting from April 1, 2025.
MIBB will market and sell the acquired products and services in 36 African countries. In doing so, it will have access to IBM’s software, hardware, cloud, and consulting solutions. This transition is expected to drive innovation and growth in the region.
IBM had been operating in Nigeria for more than 50 years. The company provides infrastructure and consulting services to the banking, telecommunications, oil and gas, and public sectors.
The company’s high-capacity storage and computing solutions were widely used by major banks such as Zenith. However, as Dell and Huawei strengthened their presence in Nigeria’s banking sector, IBM’s customer base began to shrink.
Additionally, IBM has faced financial challenges on a global scale. The company reported a 2% decline in consulting revenue and an 8% drop in infrastructure sales.
However, IBM has also seen positive developments in other areas. A 10% increase in software sales helped the company boost its total revenue by 1%.
While IBM’s exit 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.
The transition to MIBB may bring new opportunities, but businesses that rely heavily on IBM’s services could face challenges in the process.