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ANC Youth League president Julius Malema doesn't have a problem with a Nando's advert featuring a puppet named Julius, but supports the league's calls for its withdrawal.
The advert, which features a puppet named Julius, started appearing on TV screens on Friday.
Malema was quoted on Tuesday as saying: "I have no problem with the advertisement because Nando's is trying to be creative. But if they use me they must pay."
But when The Star contacted him, he said: "I have expressed my view, but my organisation feels very offended by the advert. I stand by my organisation."
The league said the adverts used "cheap satire" to undermine electoral politics in South Africa.
"We are fully aware that the advertisement is intended to mock the president of the ANCYL, and in a racist fashion portrays political leaders as cartoons," it said.
Malema said Nando's should withdraw the advert within three days if they still wanted to do business in South Africa. "We don't have money to advertise on TV and radio, but we have strength to close down every Nando's outlet," he warned.
Nando's marketing manager Sylvester Chauke said: "We are not going to withdraw the advert. It is going to continue until we have met with Malema tomorrow."
Chauke said the advert was trying to highlight in a humorous way what was happening in the country.