Spar Group Enters Telecom Market With MTN-Backed MVNO Launch

AFRICAN BUSINESS AND ECONOMYMay 21, 2025 at 11:23 AM UTC

TLDR

Retail giant Spar Group has launched a prepaid mobile virtual network operator (MVNO) called Spar Mobile, entering South Africa’s telecom sector
The service offers voice, data, and SMS with an incentive model that rewards shoppers with mobile data
The move follows similar launches by local retailers, including Pick n Pay, TFG Connect, and Boxercom, all using MTN’s MVNO infrastructure

Retail giant Spar Group has launched a prepaid mobile virtual network operator (MVNO) called Spar Mobile, entering South Africa’s telecom sector through a partnership with megsApp and MTN. The service offers voice, data, and SMS with an incentive model that rewards shoppers with mobile data when they buy promotional items in Spar and Tops! stores.

Spar Mobile SIM cards are available in-store for R15 ($0.80), preloaded with 300MB of data and R10 ($0.54) in airtime. The service supports eSIMs and number porting and will be integrated into the Spar app for account management and top-ups.

The move follows similar launches by local retailers, including Pick n Pay, TFG Connect, and Boxercom, all using MTN’s MVNO infrastructure. Since launching its MVNO platform in 2020, MTN has grown to become South Africa’s second-largest MVNO host behind Cell C.

Retail-led telecoms aim to bundle digital access with everyday shopping in a price-sensitive market. The MVNO market in South Africa is projected to reach $90.91 million in 2025.

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Key Takeaways

Spar’s entry into telecom reflects a growing convergence of retail and mobile services in South Africa. The MVNO strategy aims to turn daily purchases into digital value by offering free data incentives, targeting cost-conscious consumers, and increasing store loyalty. By leveraging its nationwide retail footprint and customer relationships, Spar reduces customer acquisition costs compared to traditional mobile operators. This model aligns with trends in other emerging markets where mobile access and retail distribution overlap. If successful in South Africa, Spar Mobile could expand to other countries where both Spar and MTN operate, such as Botswana and Zambia. The retail-driven telecom approach could prove effective in underpenetrated markets where digital inclusion and price remain key decision drivers. For MTN, enabling such MVNOs extends its reach without the overhead of customer management, while for Spar, it creates a recurring engagement loop that links telecom usage to shopping behaviour.

Business

Spar Group

Retail

South Africa

MTN

Telecom