African National Congress (ANC) deputy secretary-general Nomvula Mokonyane says that the Israeli embassy in South Africa must close its doors and the ambassador must leave his diplomatic station.
Pleading for an "end to Zionism", she added the ANC also wants a boycott of all goods imported from Israel.
"Down with the Israeli government, down. Down with the killing of people and the bombing of hospitals, down. The Israeli embassy must leave South Africa. The embassy must close, and the ambassador must go. Boycott Israeli products," Mokonyane said as the crowd cheered.
She was speaking at a march to the Israeli embassy in Pretoria on Friday, which was held to show support for Palestine as fighting between the Israeli Defence Force (IDF) and Hamas continues in Gaza.
Thousands of people - both Israelis and Palestinians - have died since the war began on 7 October. With the IDF preparing for a ground invasion of Gaza, the ANC has increased its well-known support for Palestine.
Dressed in ANC T-shirts and carrying the Palestine flag, they marched on Friday.
Protesters held posters calling for an end to the oppression of Palestinians.
Supporters of Palestinians from the general public were also at the march, as well as representatives from the Palestinian ambassador's office.
South Africa does not have an assigned ambassador in Israel, only a liaison office.
The decision to downgrade the country's diplomacy was based on the SA government's continued disapproval of Israel's actions in the Middle East region.
Gauteng Premier Panyaza Lesufi, who is also the ANC Gauteng chairperson, briefly addressed the protesters ahead of the march, warning the party's coalition partners against supporting Israel.
The comment may have been aimed at the Patriotic Alliance (PA) - the only coalition partner that has expressed support for Israel. PA leader Gayton McKenzie and his deputy, Kenny Kunene, visited Israel earlier this year.
"We will forever stand with those who stood with us during apartheid. We do not change like weather. You stand with us. We will stand with you ... we are unashamed that we stand with the people of Palestine.
"All those political parties that are in coalition with us and have decided to stand on the side of Israel must know it's over with us. We do not care whatever they bring ... We stand with Palestine," he added.
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