American technology giant IBM has ended its direct operations in Nigeria, Ghana, and several other African markets, transferring its regional functions to MIBB, a subsidiary of Midis Group, a multinational IT and telecommunications conglomerate. This change, effective April 1, 2025, marks a significant shift in IBM’s African strategy, as MIBB takes over IBM’s operations in 36 African countries.
MIBB will market, sell, and support IBM’s offerings, including software, hardware, cloud services, and consulting, while managing customer relationships across Africa. According to IBM’s statement, the partnership is intended to enhance innovation and growth in the region, with MIBB assuming full responsibility for local operations and support.
IBM’s Long Legacy in Africa
IBM has played a crucial role in Nigeria’s tech landscape for more than 50 years, providing critical infrastructure and consulting services across industries like banking, telecommunications, oil and gas, and government. Major banks such as Zenith Bank have relied on IBM’s high-end storage and computing solutions for years.
However, increased competition from global tech companies such as Dell and Huawei—both of which have expanded aggressively in Nigeria’s banking sector—has eroded IBM’s market share. The company’s shrinking client base in Africa, coupled with global financial challenges, contributed to its decision to exit direct operations in these key markets.
Global Financial Challenges for IBM
IBM’s move in Africa aligns with broader changes at the company driven by financial challenges. In 2024, IBM experienced:
- 2% decline in consulting revenue, reaching $5.18 billion.
- 8% drop in infrastructure sales, as competition in cloud and hardware services intensified.
Despite these setbacks, the company saw 1% overall revenue growth, driven by a 10% increase in software sales, which climbed to $7.92 billion. IBM ended the fourth quarter with a net income of $2.92 billion and projected at least 5% revenue growth in 2025, supported by $13.5 billion in projected free cash flow.
Opportunities and Challenges for MIBB and Local Businesses
IBM’s decision to transfer operations to MIBB creates a mixed outlook for local businesses in Nigeria and Ghana. While the move presents new opportunities for innovation and expanded support, it also raises concerns about potential disruptions in service and customer relationships.
Businesses that have depended on IBM’s infrastructure and consulting services may face uncertainties as MIBB assumes responsibility for local operations. The transition will test how well MIBB can maintain and expand IBM’s legacy while addressing the unique challenges of the African market.
What’s Next for the African Tech Ecosystem?
The shift from IBM to MIBB comes at a time when the African tech ecosystem is rapidly evolving. With increasing demand for cloud services, digital transformation, and data solutions, the region is poised for growth. Companies like MIBB will need to adapt quickly, offering tailored solutions that meet the unique needs of businesses and governments in Africa.
For IBM’s former clients, the months ahead will determine how smooth the transition is and whether MIBB can maintain the high standards of service that IBM offered. While some challenges are inevitable, the move also presents an opportunity for new players and partnerships to shape the future of tech in Africa.
Conclusion
IBM’s exit from Nigeria, Ghana, and other African markets reflects both local challenges and global financial realities. While MIBB’s takeover could inject new energy and innovation into the region’s tech space, the full impact will only become clear over time.
Businesses and governments will need to adapt to this new reality, building on IBM’s legacy while seizing opportunities for growth, innovation, and improved service delivery under MIBB’s leadership.