South Africa Is Saying Goodbye to Plastic SIM Cards

By The future report — June 2025

South Africa’s mobile industry is at a turning point — and the familiar plastic SIM card may soon become a relic of the past.

Driven by growing environmental concerns and evolving mobile technology, the country’s major network operators — including Vodacom, MTN, and Cell C — are accelerating the transition to embedded SIMs (eSIMs).

But the shift isn’t as simple as replacing plastic with code. It comes with financial, technological, and even psychological hurdles, especially in an industry where performance is often measured by sheer volume — not sustainability.

📱 Why the Shift to eSIMs Matters

Plastic SIM cards — the tiny chips we insert into our phones — have been a staple of mobile connectivity for decades. But they also contribute to tons of unnecessary plastic waste, especially in a market with high churn like South Africa.

“We issue millions of SIMs that never turn into long-term, revenue-generating customers,” says Cell C CEO Jorge Mendes.

This high churn model creates inefficiencies — and a trail of waste. While eSIMs promise a cleaner, smarter solution, they challenge how mobile operators measure success.

📉 The KPI Dilemma

SIM card activations are still considered key performance indicators (KPIs) for most mobile networks. That makes eSIMs — which don’t involve plastic distribution — a reporting problem.

“If you issue 100,000 eSIMs instead of 4 million plastic SIMs, it looks like you lost 3.9 million subscribers,” Mendes explained.
“From a KPI point of view, no one wants to be the first to report a negative drop of three to six million subscribers — even if it’s the right move.”

This internal conflict is slowing down the adoption of eSIMs despite their long-term benefits.

♻️ Vodacom Takes the Lead — Cautiously

Despite the KPI pressure, Vodacom CEO Shameel Joosub says his company is moving forward.

“We’re pushing it. We’re taking tougher measures and cleaning up the process,” said Joosub.
“We’ve had plastic SIM waste for over a decade — we’re trying to cut off inactive numbers faster and enforce stricter rules.”

However, Joosub admits that Vodacom hasn’t yet made a significant dent in reducing plastic SIM usage. The breakthrough, he says, will come from fully integrating eSIM support and modernizing customer registration.

“We need to bring in biometrics. That will lead to better registration and ultimately, less SIM card waste,” he said.

📲 What’s Holding eSIMs Back?

While the technology exists, eSIMs are still more commonly found in premium smartphones — though that’s starting to change.

“eSIM is becoming more prevalent in mid-range and even some entry-level phones,” said Mendes.
“But weirdly, it still costs more to register an eSIM than a physical SIM, which makes no sense.”

He believes the pricing issue is driven by outdated commercial agreements, not actual cost.

“There’s no reason a digital SIM should be more expensive than a physical one. That will change as competition increases,” he said.

📈 MTN and Vodacom Report Rising eSIM Demand

Both Vodacom and MTN — South Africa’s largest mobile networks — have confirmed a steady increase in eSIM adoption.

As more devices support the technology and awareness grows, eSIMs are expected to become the default option for mobile users — especially in urban areas where device upgrades are frequent.

Still, widespread eSIM adoption will take time. The industry must balance between innovation, environmental responsibility, and business optics — and that’s no easy task.

🌍 The Future: Greener, Smarter, Sim-less

The end of plastic SIM cards in South Africa is not a question of “if” but “when.”

It will require:

Courage from operators to prioritize sustainability over short-term metrics.
Regulatory changes to modernize customer onboarding.
Consumer education about the benefits of eSIMs.

But if the momentum continues, South Africa could be among the first African nations to make the eSIM standard — reducing plastic waste and reshaping mobile connectivity for the better.

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