American technology giant IBM has ceased operations in 36 African countries, including Nigeria and Ghana, in a strategic shift that marks a significant departure from its long-standing presence in the region. The company will transfer its regional functions to MIBB, a subsidiary of the Midis Group, which will take over the responsibility of marketing and selling IBM's software, hardware, cloud, and consulting services in these regions starting April 1, 2025.

This move is likely tied to near-unprofitability, compounded by growing competition from companies like Dell and Huawei, which has further diminished IBM's client base. The company has previously scaled back operations in Nigeria in response to market challenges, and this latest development marks a more comprehensive withdrawal from the region.

IBM's exit from Africa is a significant blow to the region's technology landscape, particularly in Nigeria, where the company has operated for over 50 years. During its tenure, IBM has played a crucial role in shaping the country's technology infrastructure, offering infrastructure and consulting services to key sectors such as banking, telecommunications, oil and gas, and government.

The company's departure is part of a growing trend of multinational firms scaling back or exiting Nigeria due to a tough economic environment marked by inflation and low consumer purchasing power. Other tech companies, such as Microsoft, have also shut down operations in the region, while multinational firms like Kimberly-Clark, Pick n Pay, Diageo, and Holcim have exited Nigeria altogether.

The transfer of marketing and sales responsibilities to MIBB is seen as a strategic move to maintain a presence in the region while minimizing costs. MIBB will market and sell IBM products and services in 36 African countries, giving the company's sales network direct access to IBM products, services, and support, further boosting innovation and growth in the region.

Industry experts believe that IBM's exit from Africa will create opportunities for other technology companies to fill the void, particularly in the areas of cloud computing, artificial intelligence, and cybersecurity. However, the departure of a major player like IBM also raises concerns about the region's ability to attract and retain foreign investment in the technology sector.

As IBM exits Nigeria, Ghana, and other key African markets, the region's technology landscape is likely to undergo significant changes in the coming months. While the company's departure is a setback, it also presents opportunities for innovation and growth, and it will be interesting to see how other technology companies respond to this shift in the market.