South Africa Is Saying Goodbye to Plastic SIM Cards

By The future report — June 2025

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, technological advancements, and changing consumer habits, the country’s major network operators — including Vodacom, MTN, and Cell C — are accelerating the transition to embedded SIMs (eSIMs). This shift promises a more sustainable future for the telecom sector but also brings a complex mix of challenges and opportunities.

Why the Shift to eSIMs Matters More Than Ever

Plastic SIM cards have long been the backbone of mobile connectivity worldwide. These tiny chips have connected billions of people, allowing devices to identify and authenticate subscribers to mobile networks. Yet, with the rapid pace of smartphone upgrades and frequent SIM swaps, plastic SIM cards have become a significant source of electronic waste, contributing to the growing problem of plastic pollution.

South Africa, with its high churn rate — the rapid switching of subscribers between networks or prepaid SIMs — sees millions of plastic SIM cards issued every year. According to Cell C CEO Jorge Mendes, “We issue millions of SIMs that never turn into long-term, revenue-generating customers.” Many of these cards are discarded shortly after purchase, creating an unnecessary environmental burden.

Embedded SIM technology offers a promising alternative. Instead of a physical card, an eSIM is a small chip embedded inside the device that can be programmed and reprogrammed remotely by carriers. This eliminates the need for plastic cards, reduces manufacturing waste, and simplifies the process of switching providers or plans.

Beyond environmental benefits, eSIMs also enhance convenience for consumers. For instance, users can switch carriers or add data plans without visiting a store or waiting for physical SIM delivery. Travelers can seamlessly connect to local networks without swapping cards, and device manufacturers can design slimmer phones without SIM trays.

The KPI Dilemma: Why Operators Hesitate

Despite these clear advantages, the transition to eSIMs is far from smooth. A major stumbling block lies in the industry’s reliance on traditional metrics—key performance indicators (KPIs)—that focus heavily on the number of SIM card activations.

“For mobile operators, SIM card activations are a critical KPI,” explains Mendes. “If you issue 100,000 eSIMs instead of 4 million plastic SIMs, it looks like you lost 3.9 million subscribers.”

This reporting paradox discourages many operators from fully embracing eSIM technology, as it could artificially deflate their reported subscriber numbers, potentially impacting investor confidence and market perception. The pressure to show growth often outweighs the long-term benefits of sustainability and efficiency.

Vodacom’s Strategic Push Towards Sustainability

Vodacom CEO Shameel Joosub acknowledges this tension but insists his company is committed to progressing towards eSIM adoption and reducing plastic waste.

“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.”

Vodacom is also exploring biometric registration and modernized customer onboarding to reduce fraud and improve data accuracy. Joosub believes that combining technological upgrades with sustainability goals will ultimately lead to less SIM card waste and a cleaner telecom ecosystem.

Barriers to Widespread eSIM Adoption

While the technology behind eSIMs is mature, several factors continue to slow its widespread uptake in South Africa:

• Device Availability: Until recently, eSIMs were predominantly available on high-end smartphones such as the latest iPhones and premium Android models. However, eSIM support is gradually expanding into mid-range and entry-level devices, increasing accessibility.

• Cost and Pricing Models: Surprisingly, registering an eSIM often costs more than activating a physical SIM, a pricing structure driven by outdated agreements rather than actual expenses. Mendes notes, “There’s no reason a digital SIM should be more expensive than a physical one. That will change as competition increases.”

• Consumer Awareness: Many users are still unfamiliar with eSIM technology and its benefits. Education campaigns are necessary to increase understanding and encourage adoption.

• Regulatory Environment: South Africa’s telecom regulations will need to adapt to support streamlined eSIM registration and remote provisioning while ensuring data privacy and security.

MTN and Vodacom Report Growing eSIM Demand

Both Vodacom and MTN have reported steady growth in eSIM activations over the past two years, driven largely by urban customers and tech-savvy users who frequently upgrade devices. This trend is expected to accelerate as device manufacturers standardize eSIM inclusion and mobile networks refine their offerings.

“The momentum is building,” says Mendes. “As eSIM-enabled devices become more affordable and widespread, more South Africans will experience the convenience and sustainability benefits firsthand.”

The Broader Environmental Impact

Transitioning away from plastic SIM cards fits within a larger global movement toward reducing electronic waste. Globally, millions of tons of e-waste are generated annually, much of which ends up in landfills or informal recycling operations that pose health hazards to workers and communities.

By reducing the production and disposal of plastic SIM cards, South Africa’s mobile operators can contribute to decreasing the country’s overall e-waste footprint. This is especially important in a country where environmental regulations are tightening and consumers are increasingly environmentally conscious.

What the Future Holds for South African Telecom

The move to eSIMs is not just about technology; it’s a paradigm shift requiring collaboration between operators, regulators, manufacturers, and consumers.

• Operators must realign KPIs to value sustainability and customer retention over sheer subscriber numbers.

• Regulators need to facilitate modernized digital onboarding processes that safeguard consumer privacy while enabling remote eSIM provisioning.

• Manufacturers should prioritize eSIM integration even in budget smartphones to democratize access.

• Consumers will play a crucial role by demanding greener options and embracing digital SIMs.

If these pieces fall into place, South Africa could become a regional leader in eSIM adoption, setting a benchmark for greener telecommunications across the continent.

Conclusion: A Greener, Smarter Digital Future

South Africa’s impending farewell to plastic SIM cards signals more than a technological update; it reflects a growing commitment to environmental responsibility and innovation. While challenges remain, the country stands poised to benefit from a cleaner, more efficient mobile ecosystem that supports both consumer convenience and sustainability goals.

As the telecom sector embraces eSIMs, it’s essential for all stakeholders to prioritize education, policy reform, and collaboration. Together, they can accelerate this transition, helping South Africa lead the charge toward a smarter, greener digital future — one embedded SIM at a time.