When you look at the numbers, it’s clear that Capitec Connect is one of South Africa’s standout MVNO success stories. According to Africa Analysis’ 2026 South Africa MVNO Market Outlook Report, South Africa’s MVNO market reached 4.4 million active SIMs in 2025. Of this, Capitec Connect had between 1.5 and 1.9 million subscribers, which accounts for around 41% of the local MVNO market.
To put Capitec Connect’s growth in context, FNB Connect is often ranked as the second biggest player in South Africa. FNB Connect was established in 2015 and at the end of 2025 had around 1 million customers. Capitec Connect, on the other hand, was launched in 2022. In less than half the time, Capitec Connect has built a subscriber base between 50% and 90% bigger than its closest rival. Additionally, Capitec’s annual financial results for FY 2026 revealed that the bank’s mobile network made R442 million between 1 March 2025 and 28 February 2026.
Capitec Connect’s rapid growth offers a blueprint for what it takes to succeed in the increasingly competitive MVNO space. While there’s no doubt that competitive pricing has been key to their success, I believe there are three clear reasons why Capitec Connect has done so well.
#1 They used customer data to their advantage
In an interview with ITWeb online in September last year, Dr. Dalene Steyn, who serves as the executive head of Capitec Connect, shared how they have used customer behaviour data to their advantage. “We have about 12 million Capitec clients who buy airtime from Capitec every month. Capitec is actually the biggest seller of airtime in South Africa,” she said. “I think about 41% of all the airtime bought in South Africa is bought through Capitec. So we know exactly who those clients are and we know exactly what they’re buying.” Armed with this data, she explained that Capitec Connect will target these customers and is well placed to do so because it already has valuable insights into their needs and preferences.
#2 They strategically embedded mobile into the broader business ecosystem
Capitec started offering its first full home loan product in November 2020. Two years later, in September 2022, they launched Capitec Connect. These two offerings may seem quite different but for a bank like Capitec these products complement each other very well. In this case it’s not so much about the SIM; it’s about better communication and the customer engagement it enables. If, for example, a customer is experiencing financial difficulty and signs of financial strain are clear, it’s essential for the bank to be able to contact them. If they use a Capitec Connect SIM, the bank has a verified contact number, which makes it easier to reach them before they fall into arrears.
#3 They leveraged an existing and highly engaged customer base
I’ve said it before and I’ll say it again, if you have plans to launch a greenfields MVNO in the current market, you’re wasting your time and money. Capitec didn’t have to convince millions of South Africans to trust a new brand. The business already had a large, engaged banking customer base, making customer acquisition significantly cheaper and faster. Capitec also offers incentives and rewards when customers link a Capitec Connect SIM card to their main account, which makes the offering more appealing.
When a marathon runner wants to shave minutes off their personal best, they study the training methods of elite athletes. They don’t expect to become the best runner overnight, but they understand that those at the top must be doing something right. The same is true in business.
Capitec Connect’s success offers valuable lessons. But these lessons shouldn’t be mistaken for a blueprint. What works for a bank with millions of digitally engaged customers won’t necessarily work for a retailer, insurer or challenger brand. The goal isn’t to copy Capitec Connect. It’s to interrogate why the MVNO succeeded and ask how the same principles that drove Capitec Connect’s growth could be applied across your own business.
Written by Warren Alberts, Chief Executive Officer at VAS-X