IBM Shifts African Operations to MIBB, Exiting Key Markets in Nigeria and Ghana
IBM, the American tech giant, is reportedly set to exit Nigeria, Ghana, and other significant African markets. This shift in strategy comes as part of IBM’s new operating model, which will see its regional operations transferred to MIBB, a subsidiary of the Midis Group. Effective from April 1, 2025, MIBB will take charge of IBM’s operations across 36 African nations, managing local customer support, relationships, and marketing IBM’s products and services in the region.
Under this arrangement, MIBB will benefit from direct access to IBM’s products, services, and support, a move that IBM believes will foster innovation and growth across Africa. The transfer of operations is a significant shift for IBM in its African operations, which have historically played a vital role in sectors like banking, telecom, and government services. IBM’s strategic pivot to MIBB is seen as part of the company’s broader restructuring in select international markets.
This decision is part of a larger trend of multinational companies scaling back or exiting African markets, particularly Nigeria. In recent months, other large corporations, including Swiss cement company Holcim and South African retailer Pick n Pay, have also announced their departure from the Nigerian market. Holcim sold its 83% stake in Lafarge to a Chinese firm, while Pick n Pay plans to sell its majority stake in a Nigerian joint venture.
Although IBM has not publicly elaborated on the reasons behind its exit from these markets, the move follows a pattern of companies reassessing their positions in Africa amidst challenges related to economic instability, regulatory hurdles, and shifting market dynamics. IBM has not yet responded to inquiries regarding the specifics of the transition and its future plans for African markets.
IBM’s departure from Nigeria and Ghana may have broader implications for the African tech sector. As one of the leading providers of technology infrastructure across critical industries like banking, telecom, and oil, IBM’s exit marks the end of an era for its influence in the region. However, the company’s partnership with MIBB could bring fresh opportunities for growth, potentially reshaping how IBM’s products and services are delivered across the African continent.
Source: ARISE