The Independent Police Investigative Directorate (Ipid), said it was investigating allegations that police used live ammunition during violent protests in Stutterheim, in the Eastern Cape.
The protests began Tuesday when unemployed young people from the nearby Mlungisi township took to the streets and burned down municipal buildings of the Amahtlathi Municipality, Amathole District Municipality Satellite Offices and the local clinic.
Protesters alleged that they were not getting jobs from the municipality due to nepotism and jobs for sex and bribery.
Xolisa Tom, 27, was shot dead allegedly by the police who were allegedly using live ammunition to disperse violent protests.
Tom's friend Aviwe Jacob said the two of them were not part of the protest.
He said they were on their way back from the Court where they were appearing in an ongoing case and as they approached the street corner, they saw four police officers who started shooting at them.
Jacob said they tried to hide behind one of the buildings and peeked around the corner to see if police were still there.
He then heard two gunshots and Tom, who was in front of him fell down.
Jacob said he fled the scene but when he realised nobody was chasing him he went back to help his friend, who was already lying in a pool of blood.
A spokesperson for IPID Moses Dlamini confirmed that police fired in the direction of protesters and that Tom was shot in the head.
Eighteen people were arrested and will appear in court soon.