Sabi, one of Nigeria’s most promising startups, has announced a bold new direction. The company, known for reshaping Africa’s informal trade sector, has decided to shift its focus to commodity exports. This pivot comes with tough organizational changes, including a decision to let go of about 50 employees — nearly 20% of its workforce. Sabi’s leadership believes this move positions the company for long-term success in the global marketplace. By concentrating on traceable and ethically sourced commodities, Sabi plans to meet growing global demand while supporting African producers.
Sabi’s Vision: Digitizing Africa’s Informal Trade
Since its launch in 2020, Sabi has worked to modernize Africa’s vast informal trade sector. Informal trade accounts for a significant portion of Africa’s economy, yet it often lacks transparency, efficiency, and access to modern business tools. Sabi entered this space with a clear mission: to connect small merchants, resellers, and informal businesses to technology that could help them grow.
The company’s platform offered merchants a range of services. These included tools to manage inventory, process payments, and access credit. Sabi also helped businesses improve logistics and reach more customers. The startup created opportunities for traders who had long operated outside formal systems, giving them access to digital solutions that enhanced their operations. Sabi’s approach combined technology with a deep understanding of Africa’s unique trade dynamics.
The Rise of a B2B Marketplace Leader
Sabi’s innovative model attracted attention across Africa and beyond. The startup quickly grew its network, onboarding hundreds of thousands of merchants across Nigeria and other African countries. By 2023, Sabi reported that more than 300,000 merchants had joined its platform. These merchants collectively generated an annualized gross merchandise value (GMV) of US$1 billion — a figure that highlighted Sabi’s growing influence in Africa’s informal trade.
Investors took notice. In 2023, Sabi raised US$38 million in a Series B funding round. The funding provided Sabi with the resources to expand its services, improve its technology, and strengthen its operations. The company seemed well-positioned to build a sustainable, large-scale B2B marketplace in Africa.
Challenges in Africa’s B2B E-commerce Space
Despite its early success, Sabi faced significant challenges — many of which affect the broader African B2B e-commerce sector. Africa’s informal markets remain highly fragmented, with traders operating under vastly different conditions across regions and countries. Infrastructure gaps, such as poor road networks and unreliable internet access, complicated efforts to scale operations. Unpredictable regulatory environments in various African nations added another layer of complexity.
Operational costs also rose as Sabi expanded. Global economic shifts, including inflation and currency fluctuations, placed additional strain on the company’s finances. These challenges forced Sabi’s leadership to reassess its business model and identify new areas where it could create lasting value.
Sabi Identifies New Growth Opportunities in Commodity Exports
After careful analysis, Sabi decided to pivot toward commodity exports. The company recognized that global demand for traceable, ethically sourced commodities from Africa was growing steadily. Commodities such as cocoa, shea, cashew, coffee, and minerals offer strong potential, especially as international buyers place greater emphasis on ethical sourcing and environmental responsibility.
Sabi plans to leverage its existing infrastructure, merchant relationships, and technology to build responsible supply chains that connect African producers with global markets. The company believes this new focus provides a path to sustainable growth while supporting economic development across the continent.
Launching TRACE: Sabi’s Technology Solution for Traceability
Sabi launched TRACE (Technology Rails for African Commodity Exchange) to drive its new strategy. TRACE provides the technology and infrastructure needed to ensure transparency and traceability in commodity trading. The platform enables producers and merchants to document and verify every stage of the supply chain — from sourcing to delivery.
TRACE allows Sabi to offer international buyers detailed information about where and how products are sourced. This meets growing demands from consumers, corporations, and governments for supply chain integrity. Buyers want assurance that goods come from ethical, sustainable sources, and TRACE gives them the data they need to make informed decisions.
The Global Push for Ethical Sourcing Aligns with Sabi’s Pivot
Sabi’s new focus aligns with global trends in trade and consumption. Around the world, consumers are paying closer attention to the origins of the products they buy. Governments and regulatory bodies are implementing stricter standards for environmental responsibility, labor practices, and corporate ethics. Investors are also prioritizing companies that can demonstrate responsible supply chain practices.
By building modern, transparent supply chains, Sabi aims to position itself as a trusted partner in global commodity trade. The company wants to connect African producers to premium markets where buyers are willing to pay more for certified goods that meet international standards.
Restructuring to Support the New Strategy
Sabi’s pivot required difficult organizational changes. The company made the tough decision to lay off around 50 employees as part of its restructuring. Sabi’s leadership emphasized that these changes were necessary to align the team with the company’s new direction. The startup expressed deep appreciation for the contributions of those affected. Sabi acknowledged that these employees played a critical role in building the company’s success to date.
“We are deeply grateful to our departing teammates,” Sabi said in a public statement. “Their work was instrumental to our journey, and we’re proud of everything we’ve built together. Sabi’s people are among the best in the market, and any company would be lucky to have them.”
The company promised to support its former employees through the transition and highlighted their value to the broader business community.
Strengthening Supply Chains for Long-Term Success
Sabi plans to reinvest resources into scaling its commodity export business. The company will deepen partnerships with African producers and strengthen relationships with global buyers. By offering traceable and ethically sourced goods, Sabi aims to create value for both producers and consumers.
Sabi’s existing merchant network gives it a unique advantage. Many of these merchants already work at the source of Africa’s valuable commodities. By integrating these producers into TRACE, Sabi can help them access international markets, achieve better pricing, and improve their livelihoods. The company believes this model not only ensures its own growth but also supports Africa’s broader economic development.
Industry Experts Back Sabi’s Strategic Pivot
Experts in African trade and technology see Sabi’s pivot as a smart move. The B2B e-commerce sector in Africa presents many obstacles that have limited the growth of startups in this space. By focusing on commodities — an area with stable global demand and clear growth potential — Sabi positions itself to succeed where many others have struggled.
Commodity exports provide access to higher-value markets and reduce dependence on fragmented local trade. The demand for traceable and ethically sourced commodities continues to rise, creating opportunities for companies that can deliver on these requirements. Sabi’s investment in TRACE technology puts it in a strong position to lead this market shift.
Sabi Commits to Building Responsible Trade Links
Sabi’s leadership remains committed to its core mission: transforming how the world sources from Africa. The company plans to continue investing in technology that drives transparency, ethics, and environmental responsibility in supply chains. Sabi believes that its pivot will not only secure the company’s future but also contribute meaningfully to fair and responsible trade between Africa and the rest of the world.
“Our mission remains the same — and we’re more committed than ever to transforming how the world sources from Africa,” the company said. “This shift positions us for long-term success and ensures we remain focused on building scalable, responsible supply chains.”
The Road Ahead: Sabi’s Next Chapter
As Sabi embarks on this new journey, the company aims to deepen its impact across multiple fronts. Sabi plans to:
- Expand TRACE capabilities to cover a wider range of commodities and markets
- Strengthen direct partnerships with African producers to improve sourcing practices
- Build relationships with global buyers who prioritize ethical and traceable sourcing
- Invest in technology that enables real-time verification of supply chain data
- Support African merchants and producers with tools that improve their market access and income
Sabi believes that its pivot reflects not only the company’s resilience but also its ability to innovate and lead in a changing world. By focusing on commodity exports, Sabi aims to unlock new economic opportunities for African producers while delivering value to international customers seeking responsibly sourced goods.
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