eSIM is at the early stages of adoption in Africa, with a young, tech-hungry population and high smartphone penetration driving the industry. eSIMs are embedded digital devices that allow users to switch mobile networks without a physical card. Based on 70% of its population being youths under 30, the potential impact on connectivity, IoT, and mobile-driven industries is significant.
eSIM technology eliminates the need for physical SIM cards, allowing for remote activation and simplified network switching, which increases consumer flexibility. In areas where mobile penetration and internet adoption are still on the rise, this innovation can have several significant impacts:
– It can reduce costs associated with device production and distribution.
– It can facilitate greater mobile internet adoption by streamlining the process of connecting new devices.
– It can support the rollout of 5G networks and broaden the applications of the Internet of Things (IoT).
With smartphone penetration in Sub-Saharan Africa projected to reach 64% by 2025, the adoption of eSIM-enabled devices is likely to accelerate connectivity growth, particularly in urban areas and among frequent travellers.
Globally, the eSIM market is forecast to reach $6.29 billion by 2032 with a 20% CAGR, driven by IoT, 5G, and consumer demand for flexibility while in the Middle East and Africa, the market could hit $738.6 million by 2033, with South Africa expected to see the highest growth rate from 2025 to 2033.
Some African telcos, including Vodacom and MTN, already offer eSIM support for smartphones, smartwatches, and tablets. Additionally, in South Africa, FNB Connect, a banking MVNO, has integrated eSIMs into its offerings, showing how telecom and fintech can merge to deliver new services.
For mobile operators, it will lower the costs associated with producing and distributing SIM cards. This reduction in costs also opens up opportunities to upsell data packages and attract inbound travellers who can easily switch to local networks. As for the fintech sector, there is the potential for integrating connectivity into banking and payment services, particularly for customers who travel across borders frequently. This integration can enhance the user experience and facilitate seamless transactions.
The retail and IoT industries can benefit from the ability to bundle connected devices such as smartwatches, sensors, and wearables with embedded mobile services. Finally, in supply chain industries like food, pharmaceuticals, and fast-moving consumer goods (FMCG), eSIM-powered IoT devices can enable real-time tracking, inventory management, and environmental monitoring. This will lead to improved efficiency and better decision-making in managing supply chains.
Scaling this technology, however, will require coordinated efforts from device makers needing to make the eSIM standard, operators investing in infrastructure and education, and regulators ensuring that policy keeps pace with innovation. Businesses that prepare early for this shift will be best positioned to capture the benefits of Africa’s next connectivity wave.
