Originally known for its multi-category strategy, including a focus in fast-moving consumer products (FMCG), Norskenn-22’s startup, Sabi has sharpened its focus, particularly on mineral and agricultural commodities. Sabi, launched in 2021 by Ademola Adesina & Anu Adedoyin Adasolum has developed a robust market intelligence and digital infrastructure that improves the global market access of Africa’s informal sectors.
The digital infrastructure of Sabi now consists a product named Market, through which the company will continue to manage FMCG business and Technology Rails for African Commodities Exchange(TRACE), which manages mineral and agricultural commodity businesses. The startup will not operate in any other sectors.
Sabi started its market segmentation with its TRACE product in November 2023, as demand increased. Adedoyin Adasolum said in a conference call that TRACE has the potential to help Sabi achieve its long-term goals.
Sabi’s decision to increase its focus on TRACE underscores the increasing global scrutiny of ethical procurement, aiming at addressing the persistent issues of an unreliable supply network and limited visibility in Africa’s resource-rich areas. Sabi wants to standardise the small- and medium scale mining operations in order to ensure that commodities meet international standards. Transparency is key.
Like the challenges faced by FMCGs in gaining access to markets, Sabi’s entry into commodities, notably minerals, stems largely from unreliability of supply chains, limited visibility and access.
Adedoyin Adasolum explained that commodities work differently. “But here, we’re orienting it for export and commodities do operate very differently.”
The mining and commodities industry in Nigeria, and in many other parts of Africa, is populated by small, medium and informal mining operations. To be matched up with large global supply chains, these mining operations require commodities to be supplied in industrial quantities and meet higher standards of quality control, as well as stricter policies.
Sabi TRACE aims at simplifying this process, not only for agricultural commodities but also for mineral commodities. Adedoyin Adasolum explained that suppliers could list their inventory. “They can list the quality tests they have done; they may also plug in more quality tests, they may request samplers come to their site, they may be able to access finance and, most importantly, they can trace the origin of the supply.” These minerals and agricultural commodities are sold to global off-takers, who then sell them to companies of all sizes in countries ranging from the US, UK and Netherlands to Singapore and elsewhere in Asia. TRACE’s clients include chocolate producers, battery manufacturers, and Cargill’s Business Manager for Africa, Louis Adun. Adedoyin Adasolum claims that African mining, outside of precious metals or gemstones (which Sabi does not deal in), has been largely absent from the global supply chain. This is despite the fact that 30% of the world’s mineral reserves are in Africa. “We’re helping these mines to become more professional, learn how to meet standards, and then plug them into these offtake opportunities,” said Adasolum. Sabi’s TRACE provides transparency in the supply chain for many of the global firms it serves. This is especially important as the methods and politics behind Africa’s mining are scrutinized globally, and companies’ sustainable sourcing policies are tested.
In late 2024, if you were following the news, you might have heard about a lawsuit brought by the Democratic Republic of Congo (DRC) against Apple Inc.’s French and Belgian subsidiary. The DRC government accused Apple Inc., through its lawyers. of sourcing what? They referred to as “blood minerals”which were “plucked from the DRC and washed through international supply chains” to manufacture their devices.
The tech giant responded by rejecting the allegations and then, suspending the sourcing of gold, tin, tungsten, and tantalum from the DRC. They told the BBC they were “concerned that it was no longer feasible for independent auditors or certification mechanisms to perform due diligence required to comply with our high standards.” This involves two aspects: tracing a commodity’s source, ensuring that it meets ethical standards and verifying whether the commodity adheres with the quality specifications of the purchaser.
TRACE uses a system called Flare to achieve this. It acts as a “passport”for both agricultural and mineral commodities. Flare, which is integrated with blockchain technology and tracks ESG data, ensures compliance at each stage of the supply chains and provides a transparent, auditable and traceable record. Standard-wise, every commodity is optimised for product-specific requirements, such as suitable sizes, moisture contents, or processing levels in agricultural commodities.
This multi-layered verification process adapts to each mineral, location and quantity. Physical verification is an important element. While the initial step includes suppliers listing their information, existing quality reports and other relevant documents, it is also a vital part of the process.
Adedoyin Adasolum, Sabi’s network, which includes samplers and testing labs as well as verification agencies and ESG/traceability consultant, visit sites to verify data. The level of verification within the system depends on several factors, including the quantity of supplies and the familiarity of the location of the source.
She said, “For example, if we are familiar with a certain location and we have already verified it, we would not need to send anyone else to verify all of those pieces.”
Beyond Sabi’s technological infrastructure, Sabi’s internal ESG Framework, built on principles such as shared value and prosperity; social impact through access to markets; and corporate stewardship, contributes to its long term objective of sustainable and responsibly sourcing commodity from the African continent. Since its piloting in 2013, Sabi’s TRACE system has enabled the export of approximately 50,000 tonnes of minerals.
A sustainable way
Adedoyin Adasolum says that the company is focused in creating sustainable supply chains for a world powered by technology.
It is working with its network to provide them with the technology tools and systems they need to participate in the global markets, or educating global off takers about the local dynamics in the commodities sector. This helps it address the larger challenges in the commodities industry across the continent. She said, “I think we’re used to thinking about the mining industry and minerals in a certain way. But the reality is that everything you use for electronics came from the earth.” “You have large mining operations that operate in a certain way, but you also have smaller local players that are growing their operations and are serious about the standards required to mine and grow your business and are willing do what is needed to hit these standards.”
