Hildah Magaia opened the scoring for the African champions three minutes into the second half. The goal was enough to offer Banyana a glimmer of hope to cause an upset against the third-ranked Swedes.
A 65th minute strike from Barcelona star Fridolina Rolfo levelled matters for Sweden.
Sweden who are considered the tournament’s favourites, dominated possession but came second best due to the cold and rainy conditions that made life difficult for them to play on a wet pitch.
Arsenal defender Amanda Ilestedt grabbed a late winner for Sweden deep in stoppage time to make the score 2-1.
Banyana are yet to get a point from all the three matches they lost since making a World Cup debut in 2019 in France. They play their next Group G match against Argentina in Dunedin on Friday.