In a significant move, American technology company IBM has announced the end of its direct operations in Nigeria, Ghana, and other key African markets.

As part of a new operating model, IBM has transferred its regional functions to MIBB, a subsidiary of Midis Group, a multinational IT and telecommunications conglomerate.

This strategic shift, effective April 1, 2025, will see MIBB market and sell IBM’s products and services across 36 African countries.

The partnership is expected to drive innovation and growth in the region, with MIBB taking over the responsibility of IBM’s operations, support, and local customer relationships.

IBM’s decision to end its direct operations in Africa comes after over 50 years of presence in Nigeria, where it played a vital role in shaping the country’s technology landscape.

The company provided infrastructure and consulting services to critical industries such as banking, telecommunications, oil and gas, and government.

However, in recent years, IBM faced increasing competition from companies like Dell and Huawei, which expanded their footprint in Nigeria’s banking sector.

This led to a shrinking client base for IBM, making it challenging for the company to maintain its operations in the region.

Globally, IBM has also faced financial difficulties, with a 2% decline in consulting revenue and an 8% drop in infrastructure sales in 2024. Despite these setbacks, the company reported a 1% overall revenue increase, driven by a 10% growth in software sales.

As IBM transitions its operations to MIBB, the impact on local businesses and government partnerships remains uncertain.

While the change may offer new opportunities for innovation and support, it also presents challenges for businesses that have relied on IBM’s products and services.

The African tech ecosystem will likely take time to adjust to this new operational model. As the dust settles, it will be interesting to see how MIBB fills the gap left by IBM and how local businesses adapt to the change.