Sabi, one of Africa’s fastest-growing B2B e-commerce startups, has laid off around 20% of its staff—about 50 employees—as it shifts focus away from retail digitization to double down on its fast-growing commodity export division.

The layoffs were confirmed by the company on Thursday and come as part of a broader restructuring aimed at consolidating resources around TRACE (Technology Rails for African Commodity Exchange), a new business vertical that is rapidly becoming Sabi’s growth engine.

Founded in Lagos in 2020, Sabi started as a software solution helping informal retailers digitize their inventory and sales—an urgent necessity during the COVID-19 pandemic when disruptions exposed inefficiencies in traditional supply chains. The platform quickly evolved into a full-fledged FMCG (fast-moving consumer goods) marketplace with embedded finance tools, allowing it to scale across Nigeria and later Kenya. By mid-2023, Sabi reported over 300,000 merchants and an annualized gross merchandise volume (GMV) of over $1 billion. That growth story helped the company raise $38 million in a Series B round at a $300 million valuation.

But even with strong traction, Sabi was not immune to the structural headwinds that have challenged African B2B e-commerce platforms: thin profit margins, high operational costs, and complex logistics. While many of its competitors leaned on asset-heavy models that burned through cash, Sabi adopted an asset-light approach that allowed it to remain profitable. However, the market shift became clear—retail digitization was growing slower than expected, while demand for traceable, ethically sourced commodities was accelerating globally.

In March 2024, Sabi launched TRACE, a business unit focused on exporting minerals and agricultural products like lithium, cobalt, tin, and cash crops. These exports are aimed at meeting rising global demand—especially from buyers in the U.S., Europe, and Asia—for commodities that are traceable, ESG-compliant, and ethically sourced. In less than a year, TRACE has scaled to exporting more than 20,000 metric tons of such commodities every month.

“Sabi is entering its next chapter, with a focused commitment to commodity trade and traceability for global customers,” the company said in a statement. “We’re doubling down on the part of our business seeing the most demand, built on the strong foundation we’ve laid since 2021 by supporting African merchants and their growth. To align with this momentum, we’ve made the difficult decision to restructure parts of our team.”

The restructuring reflects a broader transformation in Sabi’s business model, as the company pivots from its original mission of supporting small retailers to becoming a major infrastructure player in Africa’s commodity trade. TRACE leverages Sabi’s original digital and logistics infrastructure but applies it to export-focused supply chains. The goal: offer global buyers end-to-end visibility into commodity origins, from farm or mine to port, ensuring compliance with international sustainability and sourcing standards.

Sabi’s strategy aligns with growing international pressure on supply chains to become more transparent and sustainable. Traceability and ESG compliance are now considered premium features in the commodity markets. Sabi is tapping into a more profitable, scalable, and globally relevant opportunity by catering to that demand.

The company has also expanded its operations into the United States and hired senior executives to support its global growth. Its shift is being closely watched in Africa’s tech ecosystem, where many early-stage companies—particularly those focused on informal trade and logistics—are rethinking their paths to sustainability.

While the layoffs are a painful decision, the company said it remains committed to profitability and long-term growth. The asset-light structure that once supported informal retailers is now being repurposed to enable a new kind of African trade: one built on infrastructure, compliance, and global trust.

The pivot also illustrates a broader lesson in the African startup scene—scaling beyond the digitization of fragmented local markets may require stepping into the global value chain, particularly where Africa holds a competitive edge in raw materials and agriculture.

With this move, Sabi is seen as positioning itself not just as a B2B e-commerce platform, but as a cross-border trade enabler with the infrastructure to connect Africa’s commodity supply with international demand. It’s a bold move that may prove to be a blueprint for other tech firms navigating Africa’s difficult operating environment—and a signal that the continent’s most successful startups might be those that build for the world, not just for their neighborhood.

The Trump administration is weighing a consequential move that could significantly reshape the global semiconductor supply chain: revoking special U.S. export authorizations that currently allow chipmakers Samsung Electronics, SK Hynix, and TSMC to receive American semiconductor manufacturing equipment at their facilities in China.

According to people familiar with the matter, cited by Reuters, the U.S. Department of Commerce is actively reviewing whether to pull back the authorizations, granted in recent years, which allow the companies to bypass otherwise sweeping export controls imposed on China in October 2022. These measures, if enacted, would make it far more difficult for the three global chip giants to continue accessing advanced U.S.-made equipment in their Chinese fabs.

The Special Waivers at Risk

After the U.S. imposed export curbs to restrict China’s access to high-end chipmaking tools in 2022, it made an exception for certain non-Chinese manufacturers operating in China. Samsung and SK Hynix—the dominant players in memory chip production—and TSMC, the world’s largest contract chipmaker, received temporary authorizations that let them continue importing U.S. equipment without seeking individual licenses for every shipment.

By 2023 and 2024, the companies had received what the Commerce Department refers to as “Validated End User” (VEU) status, allowing them a more stable and streamlined supply of restricted goods. VEU status not only eased export bureaucracy but also enabled predictable manufacturing operations, as long as the companies adhered to certain conditions, including limits on specific equipment and mandatory compliance reporting.

Now, these waivers may be withdrawn.

U.S. Strategy: Preemptive Leverage or Imminent Policy?

While the Department of Commerce has not formally moved to revoke the authorizations, a White House official confirmed the government is “laying the groundwork” to do so if necessary.

“There is currently no intention of deploying this tactic,” the official told reporters. “It’s another tool we want in our toolbox in case either this agreement falls through or any other catalyst throws a wrench in bilateral relations.”

This indicates that Washington is preparing for a possible breakdown in its delicate trade balance with China, while still banking on a rare earths agreement and diplomatic détente. However, the preparation alone sends a strong signal of the administration’s readiness to escalate restrictions if relations sour.

Impact on the Global Semiconductor Industry

Samsung and SK Hynix both operate major memory chip plants in China that are essential to global supply chains. TSMC, although not manufacturing its most advanced chips there, runs a mature-node fab in Nanjing.

Should the U.S. revoke the VEU waivers, all three companies would be forced to apply for case-by-case export licenses to import U.S. tools—an uncertain and often time-consuming process. Industry experts warn this could delay production timelines, increase operational costs, and potentially push manufacturers toward non-U.S. equipment vendors from Japan or Europe.

One Commerce Department official insisted that “chipmakers will still be able to operate in China,” suggesting the U.S. is not seeking an outright ban, but rather a recalibration that puts them on par with other companies under the October 2022 rules.

However, analysts say revoking the exemptions could inadvertently strengthen Chinese domestic competitors by cutting off foreign firms from reliable U.S. equipment access. One source described the move as “a gift” to China’s fledgling chip toolmakers, such as AMEC and Naura, which are quickly trying to close the technological gap.

Market Reactions

The mere news of the deliberations was enough to rattle the markets. Shares of leading U.S. chip equipment suppliers fell sharply: KLA Corp dropped by 2.4%, Lam Research lost 2.3%, and Applied Materials fell by 1.7%. Meanwhile, U.S.-based Micron Technology—one of Samsung and SK Hynix’s main competitors—saw its stock rise by 1.3%, reflecting investors’ expectations that tighter restrictions on its rivals could improve Micron’s market position.

Curtailing China’s Tech Rise

The potential policy shift is part of a broader U.S. strategy to curtail China’s rise in advanced technology. Washington has made no secret of its intention to limit Beijing’s access to the tools and expertise necessary for developing cutting-edge semiconductors, which are essential for artificial intelligence, defense, and advanced computing.

In the past two years, the administration of former Presiden Joe Biden took sweeping actions—including limiting investment in Chinese AI and semiconductor companies, restricting exports of AI chips, and tightening foreign collaboration standards for U.S.-funded tech research. The threat of removing VEU waivers adds another layer to that strategy.

It also reflects growing pressure from lawmakers and national security officials who argue that even allied foreign chipmakers in China pose a risk if they have unfettered access to American technology on Chinese soil.

While no official decision has been made, the fact that discussions have reached this point underlines a willingness by Washington to significantly raise the stakes in its tech rivalry with Beijing. If enacted, the move would likely provoke a response from both China and affected U.S. allies.

“This is about ensuring reciprocity and guarding against misuse of our most sensitive technology,” said a U.S. official familiar with the discussions.

However, others within the administration warn of the economic blowback such a policy could generate—not only on global supply chains but also on American equipment manufacturers that depend heavily on Chinese revenue.