Overseas sim swap not working

I have a SIM free iPhone 4S just purchased from Carphone Warehouse and I have been using it on O2. I am now travelling overseas in South Africa (where they have iPhones on their networks) and have put in a local pay as you go SIM card but the phone wants to "activate" and then gives me an error message:
"Only compatible SIM cards from a supported Carrier may be used to activate iPhone. Please insert the SIM card that came with your iPhone or visit a supported Carrier's store to receive a replacement SIM card."
The SIM is with a suported network and why does the phone want to "activate" every time I try and swap a SIM?
Any ideas guys?

Ben in Africa wrote:
Any ideas guys?
Yep. The ONLY officially unlocked iPhones, currently being sold in the UK, are those purchased directly from Apple. If you got your phone anywhere else, it is NOT officially unlocked.

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