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A towering header from Tylon Smith in the 66th minute proved the difference in a pulsating clash between two African football giants.
The Amajita, now unbeaten in five matches, displayed resilience and clinical finishing to end Nigeria's dreams of an eighth U-20 AFCON crown.
Nigeria controlled much of the second half but squandered key chances. Goalkeeper Fletcher Lowe emerged as South Africa's hero, denying Emmanuel Chukwu and Israel Ayuma with crucial saves in the closing stages.
The first half saw cautious play, with Nigeria's Tahir Maigana and South Africa's Kutlwano Letlhaku testing the keepers but failing to break the deadlock. The game's turning point came when Neo Rapoo's pinpoint corner found Smith, who nodded home his first tournament goal to spark wild celebrations.
Nigeria threw on Rickson Mendos and Bidemi Amole in a desperate bid to equalise, but South Africa's defence, led by Lowe's heroics, held firm. Ayuma's diving header in the dying minutes, brilliantly tipped over by Lowe, encapsulated Nigeria's frustration.
This triumph marks South Africa's second U-20 AFCON final appearance, their first since 1997, and extends their unbeaten streak at Suez Canal Stadium to four games. For Nigeria, it's a third straight semi-final exit, following defeats to Gambia in 2023 and Mali in 2019.
With a place in the 2025 FIFA U-20 World Cup already secured, the Amajita are now one win away from their maiden continental title. They await the winner of the Senegal vs Ghana semi-final, poised to make history.