Global
technology leader IBM has announced its departure from Ghana, Nigeria, and
several other key African markets, ending its direct presence in the region
after decades of operation. The company will transfer its regional operations
to MIBB, a subsidiary of the Midis Group, a multinational IT and
telecommunications conglomerate with a strong presence across Europe, the
Middle East, and Africa.
Effective April
1, 2025, this transition will see MIBB take over the marketing, sales, and
distribution of IBM’s software, hardware, cloud, and consulting services across
36 African countries. While IBM’s technology solutions will remain accessible
in the region, they will now be managed and delivered by MIBB rather than IBM
directly.
IBM’s exit
marks the end of a significant chapter in Africa’s technological evolution. For
over 50 years, IBM has been a key player in West Africa’s digital
transformation, providing essential IT infrastructure, cloud computing, and
consulting services to industries such as banking, telecommunications, oil and
gas, and government institutions. The company’s advanced storage and computing
solutions have been widely adopted by major financial institutions, including
Zenith Bank and others.
However,
increasing competition from global tech giants like Dell and Huawei, which have
expanded their footprint in West Africa’s banking and enterprise sectors, has
eroded IBM’s client base. These challenges, combined with broader global
financial pressures, have prompted IBM to rethink its strategy in Africa.
IBM’s decision
to exit the region comes amid mixed financial performance globally. In 2024,
the company reported a 2% decline in consulting revenue, dropping to $5.18
billion, while infrastructure sales fell by 8%. Despite these setbacks, IBM
achieved a 1% increase in overall revenue, reaching $17.55 billion, driven
largely by a 10% growth in software sales. Looking ahead, IBM anticipates at
least 5% revenue growth in 2025, supported by an expected $13.5 billion in free
cash flow.
The transition
to MIBB reflects IBM’s broader strategy to streamline operations and focus on
high-growth areas. By partnering with MIBB, IBM aims to ensure that its
technology solutions continue to serve African businesses while reducing its
direct operational footprint.
By: Nana Appiah Acquaye
