The proposal comes ahead of a U.N. General Assembly vote Thursday on a resolution urging President Donald Trump to rescind his decision recognizing Jerusalem as Israel's capital.
It, however, remains to be seen whether or not the resolution will be implemented, since the ANC at its 2012 conference also had approved a policy to boycott Israel.
The Jerusalem District Court on Tuesday sentenced 20-year-old Palestinian terrorist Morad Rajbi to 15 years in prison for wounding.
The two groups stressed: "We question the motives behind this discriminatory decision that would effectively prevent South Africa from playing any mediatory role in bringing about peace or dialogue between Israel and Palestine".
The South African Board of Jewish Deputies and the South African Zionist Federation jointly condemned the ANC's decision.More news: Facebook steps into YouTube with Universal Music Deal
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It was reportedly behind a failed attempt to cancel the Africa-Israel Summit held in October. "Why, one wonders, would they choose to send a message to the Jews of their country that they support an organization that states very clearly in its charter that it seeks the death of Jews?"
The South African Reserve Bank (SARB) has cautioned that plans to nationalise the bank will put the country's economy at risk.
The Palestinian ambassador to South Africa Hashem Dajani welcomed the ANC move, describing it as "an important decision".
Friedman said that it was not unusual for the ANC to show support for the Palestinians.
"These procedures do also help in the extremist organisations to wage a religious war that would harm the entire region, which is going through critical moments and would lead us into wars that will never end, which we have warned about and always urged to fight against", Palestine's president, Mahmoud Abbas, said in a televised address following the USA announcement, according to a CNN report.