Fikile Mbalula said Bafana Bafana's performance on Sunday, when it suffered a 3-1 defeat to the Nigeria to exit the tournament, was "not even lacklustre, it was useless," and a "disaster".
The squad is "just a bunch of unbearable, useless individuals," he told a news conference.
Hosts South Africa needed only a draw to advance to the quarter finals of the continental tournament, with includes only locally based players.
Nigeria now proceeds from the group stage to join Group A winners Mali in the next round.
South Africa's national squad has in recent years performed dismally at most international competitions, despite repeated changes of their coach.
"We indeed have a crisis of monumental proportions," said the minister, adding it's not a crisis of talent, but one of organisation.
"That mediocrity that was displayed yesterday we must never wake up to that again."
The minister said he got so angry while watching the match in Cape Town that "I felt like just standing up and walking out."
After the match he didn't even find it worth the trouble to go down to pitch to shake hands with the team.
"I did not even go to the dressing room, I did not even call them."
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