Long-term rainfall data with good spatial and temporal distribution is essential for all climate-related analyses. The availability of observed rainfall data has become increasingly problematic over the years due to a limited and deteriorating rainfall station network, occasioned by limited reporting and/or quality control of rainfall and, in some cases, closure of these stations. Remotely sensed satellite-based rainfall data sets offer an alternative source of information. In this study, daily and monthly rainfall data derived from Climate Hazards Group InfraRed Precipitation (CHIRPS) is compared with observed rainfall data from 46 stations evenly distributed across South Africa. Various metrics, based on a pairwise comparison between the observed and CHIRPS data, were applied to evaluate CHIRPS performance in the estimation of daily and monthly rainfall. The results show that CHIRPS data correlate well with observed monthly rainfall data for all stations used, having an average coefficient of determination of 0.6 and bias of 0.95. This study concludes that monthly CHIRPS data corresponds well, with good precision and relatively little bias when compared to observed monthly rainfall data, and can therefore be considered for use in conjunction with observed rainfall data where no or limited data is available in South Africa for hydrological analysis.