New Africa Analysis report finds banking MVNOs, eSIM adoption and ecosystem-led business models are reshaping South Africa’s mobile
market
Cape Town, South Africa – June 2026 – South Africa’s Mobile Virtual Network Operator (MVNO) market has entered a new phase of development, evolving from a niche telecommunications segment into a strategic customer engagement platform for banks, retailers, insurers and digital businesses, according to the newly released 2026 South Africa MVNO Market Outlook Report by Africa Analysis.
Key SA Market Highlights
| Metric | 2025 |
|---|---|
| Active MVNO SIMs | 4.4 million |
| MVNO market share | 3.7% |
| Annual subscriber growth | 43% |
| Largest MVNO | Capitec Connect |
| Forecast MVNO SIMs (2030) | 14.4 million |
| Forecast market share (2030) | 12.5% |
Banking MVNOs Become the Market’s Growth Engine
The report identifies banking MVNOs as the primary driver of market growth. Capitec Connect reached approximately 1.9 million subscribers by the end of 2025, accounting for around 41% of the MVNO market.
Other major banking-led operators, including FNB Connect, Standard Bank Mobile and Nedbank Connect, are increasingly using connectivity to strengthen customer relationships, improve loyalty and support broader digital ecosystem strategies.
“The South African MVNO market has entered a fundamentally different phase of development. We are seeing connectivity embedded into broader customer ecosystems where the primary objective is no longer selling airtime, but improving customer engagement, loyalty and retention. This represents the emergence of the MVNO 3.0 model.”
Andre Wills, Managing Director, Africa Analysis Team
The Rise of MVNO 3.0
The report identifies the emergence of MVNO 3.0, a new generation of operators that use mobile connectivity to increase customer retention, drive digital engagement and enhance customer lifetime value.
Under this model, connectivity becomes an embedded service within broader banking, retail, insurance and digital ecosystems rather than a standalone telecommunications
product.
Significant Growth Potential Remains
Despite rapid growth, South Africa remains underpenetrated relative to leading global MVNO markets with a similar market age.
| Market | MVNO share |
|---|---|
| South Africa (2025) | 3.7% |
| MVNO markets at similar market age | 12.6% |
This suggests substantial headroom for future growth as digital ecosystems expand and
new brands enter the market.
eSIM Expected to Accelerate Growth
The report identifies eSIM technology as a key catalyst for the next phase of MVNO development.
Approximately 59% of South African MVNOs either already support eSIM or have announced plans to introduce it. By removing the need for physical SIM cards, eSIM enables fully digital customer acquisition, reduces distribution costs and lowers barriers to
market entry.
Outlook to 2030
Africa Analysis forecasts that the South African MVNO market will reach approximately 14.4 million MVNO SIMs by 2030, representing 12.5% of the retail mobile market. Future growth is expected to come from many different segments:
- Banking and financial services brands
- Retail and loyalty ecosystems
- Digital-first service providers
- Internet service providers
- Insurance and affinity brands
- Emerging digital platforms
The report concludes that future market leaders will be determined less by price competition and more by their ability to use connectivity as a strategic layer within broader customer ecosystems.
About the Report
The 2026 South Africa MVNO Market Outlook Report, now in its fourth annual edition, delivers a comprehensive analysis of South Africa’s rapidly evolving MVNO sector. The report provides detailed market sizing and forecasts, competitive benchmarking, strategic assessments of banking, retail and digital MVNOs, analysis of MVNE and host network developments, eSIM adoption trends, and insights into the long-term growth prospects of the market.
Media Contact
Andre Wills
Managing Director
Africa Analysis Team
andre@africaanalysis.co.za
+27 82 447 2278
www.africaanalysis.co.za
