The 38-year-old Funeka dominated from the opening bell as he scored with stinging lefts and rights to the head of the overmatched Addy.
With Addy not fighting back the referee waved the fight off in the third round.
Dyer wins SA super middleweight title
Lee Dyer from KwaZulu Natal won the South African super middleweight title when he upset defending champion Balemo Weliya with an eleventh round stoppage.
Against the odds the super fit Dyer battered Weliya (originally from the DRC) throughout the fight before the referee stepped in to stop the one-sided action in the eleventh round.
Dyer’s reported record improved to 6-3-1; 5 and Weliya’s record dropped to 12-4; 5.
Odwa Gaxa retained his Eastern Cape featherweight title when he stopped Masande Mendile in the first round. Time 0:15.
Other results: Flyweight: Thembelani Nxoshe beat Xolani Radi, tko 3; Welterweight: Luyolo Magenuka beat Siyabulela Mfene, tko 1