SABI, an Africa-focused provider of commercial infrastructure for goods and services distribution, has opened a new office in Johannesburg to bolster its contribution to the digital transformation of South Africa’s R157-billion informal economy.

The B2B platform has offices in Kenya and Nigeria. It has now partnered with ICT solution provider Vumele to target South African micro, small-and-medium sized traders with access to more reliable supply chains and better customer marketing.

According to SABI, South Africa's informal economy includes over 200,000 spaza shops and spazarettes, 100,000 Kasi Kos traders & taverns, and 500,000 street hawkers & table top traders - mostly small businesses.

Valued at over R 157-billion, they supply basic needs including food and clothing while employing around 30% of the country’s population.

A statement released by the companies explains: “South Africa is a key market in Sub-Saharan Africa’s US$800-billion informal trade economy, which is made up of over 56 million micro, small and medium-sized businesses, most operating offline with little or no exposure to the formalised, digital economy - an issue that SABI is solving across the continent.”

Vumele uses its technology platform to provide informal merchants with access to supplies, logistics, business tools, payment processing, and financial services. The platform enables businesses to reach the right suppliers, get sector-specific middle agents and increase their customer reach in hours rather than months.

Founded in 2021 in Nigeria, SABI has grown into the largest commercial services platform for Africa’s informal economy, with a US$500-million annualised Gross Merchandise Value (GMV - or total volume of sales) as of July 2022.

Two hundred thousand traders and ten thousand agents, mostly low-income earners or traders without access to traditional business or financial services, in Africa already use the platform via the SABI app.

Anu Adasolum, CEO and Co-Founder, SABI said: “SABI’s technology creates a cost-effective bridge that enables informal traders to reach the right suppliers in a way that boosts net benefits for everyone involved in the value chain. “We are excited to partner with Vumele in becoming the ecosystem for South Africa’s informal economy of small buyers, sellers and agents. These hard-working people are an often-neglected group across Africa that provides employment, food and other basic needs for more than 70% of the continent's population.”