DStv, e.tv and M-Net, which previously aired the new advert but which the SABC banned, all say they will suddenly no longer show it.
DStv said the advert "could be deemed offensive" and e.tv claims that the commercial "trivialised" xenophobia.
"Whilst we understand that the commercial is a parody, we are not convinced that all our viewers will interpret it in the way intended," Chris Hitchings, CEO of DStv Media Sales told Channel24.
DStv Media Sales is the commercial advertising arm which books TV commercials for MultiChoice's DStv channels and M-Net.
"We have a responsibility not to broadcast material that could be deemed offensive to our viewers and we have exercised our rights in this regard."
e.tv also ceased airing the Nando's ad from Tuesday in which basically all of South Africa's residents disappear, leaving a lone Khoisan who says he was in South Africa first.
The advert, which showcases two new products on Nando's "diverse" menu, has a strong message against xenophobia and says the company celebrates diversity in all its forms.
"e.tv decided last night to suspend the airing of the Nando's xenophobia advertisement," Monde Twala, e.tv's head of channels told Channel24 on Tuesday.
"e.tv respects creativity and the channel has previously flighted advertisements that have been rejected by other broadcasters.
"In evaluating the advertisement, e.tv came to the conclusion that it trivialised xenophobia which remains a sensitive and volatile issue in South Africa. e.tv reserves the right, at any time, to withdraw a commercial from the channel on grounds of taste or legality," he said.
Watch the Nando's diversity ad here.