According to a 2025 report from the GSMA, the mobile virtual network operator (MVNO) business model boosts access, diversifies services and fosters greater competition. The same report found that there were over 2000 MVNOs operating across nearly 100 markets around the world, but only 65 of these operators were in Africa.
And yet, Africa is the ideal market for MVNOs. A mobile-first continent with the youngest population in the world, growing smartphone penetration and massive financial inclusion gaps, there is a real need for tailored mobile services that give customers greater choice.
By partnering with traditional mobile operators, MVNOs can leverage existing network infrastructure to better cater to the region’s underserved customer segments. In doing so, they’re also helping operators unlock new wholesale revenue. The result is a win-win: operators monetise spare network capacity, while consumers benefit from more relevant and affordable products and innovative digital experiences.
So, why isn’t Africa’s MVNO landscape booming?
I’ve probably sat in on 50 calls in the last six months with people from Tanzania, Kenya, Zambia, Angola and others who have dreams of starting an MVNO in Africa. We take them through the journey and explain how to go about it but it seldom progresses. It’s not a lack of passion or entrepreneurship – you can see the fire in their eyes when they speak about their plans. But, in my experience, they aren’t able to translate their ideas into reality for two reasons: regulatory uncertainty and a lack of buy-in from mobile operators.
#1 Regulatory uncertainty
When it comes to MVNO regulation, the rules vary greatly from one country to the next. For example, an MVNO operating in South Africa does not need a license. This is because these businesses aren’t building out infrastructure; instead they just “piggyback” on existing networks and use these networks to resell mobile services.
Nigeria, on the other hand, has taken the opposite approach. The Nigerian Communications Commission (NCC) introduced a dedicated MVNO licensing framework back in 2022. This can cost anywhere between ₦35 million and ₦500 million (about R400 000 to R6 million). Updates to these requirements are currently under review, because the NCC has acknowledged that despite interest, MVNO market growth is slow.
#2 Poor support from mobile operators
Unfortunately, many mobile network operators across Africa view MVNOs as a threat to their business and, thus, aren’t willing to allow these service providers to use their infrastructure. By opening their networks to third parties, the fear is that MVNOs will simply poach customers from their businesses.
In South Africa, we also experienced this. Cell C was quick to embrace the MVNO model, while larger brands like MTN, Vodacom and Telkom were slower to enter the space. For Cell C being open to working with MVNOs was a great way to differentiate the business in a competitive market.
Coming back to Nigeria, the country’s telecoms regulator has issued 46 MVNO licences since 2023. But by the end of October 2025, just two of these had launched commercial services. Why is this the case? One of the major barriers to the successful launch and scaling of MVNO services is an inability to secure wholesale access to existing cell towers. And without a wholesale agreement, MVNOs can’t operate.
South Africa’s thriving MVNO market should serve as inspiration for the rest of the continent. Not only does this approach give customers more options and create new revenue streams for mobile operators, but it also enables businesses in other industries to enter the space. By lowering the barriers to entry, South Africa has created an environment where a big bank could launch a mobile business and in just over three years gain more than 1.5 million active users. If replicated across the continent, a robust MVNO ecosystem can give millions more Africans access to affordable and reliable mobile services and unlock greater opportunities for economic growth.
By Warren Alberts, Chief Executive Officer at VAS-X
