The SA team earlier beat France in their opening game.
The Blitzboks have lost 19-14 to Argentina at the Dubai Sevens on Saturday, their second straight loss at the tournament to fall out of contention to win the title they have won 11 times previously.
The South Africans also lost 28-10 to Fiji in their second game earlier in the day — a defeat that came in some fashion, the Blitzboks being completely outplayed by the Fijians.
It was a tough outing for the Blitzboks after earlier performing well to down France in their opener.
They won a tight 15-12 against France.
This is the first event of the new World Sevens Series.
Philip Snyman’s team will now play Great Britain in the the fifth-place semi-final on Sunday.
Under the new format, with just eight teams playing, in two pools of four each, every match is crucial and the Blitzboks will now have to regroup ahead of next weekend’s home leg in Cape Town.
The knockout games are on Sunday.
