The All Whites are out of semi-final contention at football's Confederation Cup after South Africa beat them 2-0 at Rustenberg.
The hosts were far superior in the first half and could have led by more than one goal but for a marginal offside and a great save by the New Zealand goalkeeper Glen Moss.
After the break they continued to outpace the All Whites, who seldom threatened and could have lost by more if Moss hadn't made several more saves and another goal hadn't been disallowed for offside.
South Africa's first win leaves them second behind Spain after the European champions and world number ones reached the semi-finals with a 1-0 win over Iraq, who play New Zealand on Sunday.
