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 move deepens the convergence of retail and telecom in Africa’s most developed mobile market, where affordability and loyalty-driven models are reshaping competition.

The MVNO will offer prepaid voice, data, and SMS services, with a twist: shoppers can earn free mobile data by purchasing selected promotional items in Spar and Tops! stores. The company claims this model could cut mobile costs for customers by up to 50%.

“The Spar Mobile offering is anchored on simplicity, affordability, and trustworthiness, giving us a chance to create one-of-a-kind deals for our customers – linking groceries and Tops! Products with free data,” said Blake Raubenheimer, omnichannel executive at Spar Group.

Customers can buy Spar Mobile SIM cards in-store for R15 ($0.80), which come preloaded with 300MB of data and R10 ($0.54) in airtime. In addition to traditional SIM cards, Spar Mobile supports eSIM functionality and number porting, and will be integrated with the Spar mobile app to simplify top-ups and account management.

“Spar is well-positioned to run and operate an MVNO. We are building the network from very competitive pricing that is simple and easy for customers to understand,” said Raubenheimer.

The launch follows similar MVNO plays from South African retailers, including Pick n Pay, TFG Connect, and Boxercom, all of which have launched MVNOs using MTN’s network. Since launching its MVNO platform in 2020, MTN has become a key enabler of retail-led telecom services in the country, second only to Cell C in MVNO hosting.

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. Retailers are betting that bundling mobile services with everyday purchases will not only strengthen brand loyalty among existing customers but also attract new consumers looking for seamless digital access, particularly in price-sensitive markets.

If Spar Mobile proves successful in South Africa, there is potential for expansion into other markets where Spar and MTN both operate. Countries like Botswana and Zambia, where both entities have a presence, could benefit from similar retailer-driven mobile services. A Spar-branded MVNO could serve as a practical solution for consumers in these markets, particularly if the incentive-driven model of earning free data through shopping resonates well with South African customers.

Author Credits- Sakhile Dube, techcabal