Spar Group, the South African retail giant, is expanding into telecoms with the launch of Spar Mobile, a prepaid mobile virtual network operator (MVNO) built in partnership with megsApp and backed by MTN.
The MVNO will offer prepaid voice, data, and SMS services and also allow customers to earn free mobile data when purchasing select promotional items at Spar and Tops! stores, potentially reducing costs by up to 50%.
To participate, customers will have to buy Spar Mobile SIM cards, priced at R15 ($0.80), and come with 300MB of data and R10 ($0.54) in airtime. The service supports eSIM functionality, number porting, and seamless integration with the Spar mobile app for easy account management. The model is designed for South Africa’s price-sensitive, mobile-first market, where loyalty programs and value-driven bundles are already reshaping retail and telecom competition.
Why is Spar doing telecoms? Short answer. A huge demand. South Africa’s MVNO market is projected to hit $90.91 million in 2025, according to industry estimates, driven by growing demand for flexible, low-cost mobile alternatives.
Spar follows in the footsteps of other retailers, such as Pick n Pay and TFG Connect, that have launched MVNOs via MTN’s platform. Since 2020, MTN has played a key role in enabling retail-led telecom services in South Africa, where MVNOs are projected to generate $90.91 million in 2025.
If successful, Spar Mobile could extend to other markets where both Spar and MTN operate, including Botswana and Zambia. With retailers leveraging mobile services to deepen customer loyalty and attract price-sensitive consumers, this innovative model could redefine telecom affordability in the region.
