The all-electric series will race in South Africa from 2023 for five years, with the construction of the circuit beginning next month, while it is expected to be completed by December.
Cape Town will be the second African-based E-Prix on the calendar, joining Marrakesh in Morocco.
The circuit will be situated through the Green Point and Waterfront district in Cape Town, showing off some of the city’s main landmarks.
Formula E is claiming it will be one of the fastest street circuits on the calendar in 2023.
Formula E COO Alberto Longo said: “We’ve had a very positive response within our ecosystem of teams, drivers and sponsors about coming to Cape Town, so we are delighted that the City is joining our Season 9 calendar. When I first met Iain Banner in 2019, he said that he was confident that Cape Town had the potential to be one of the top cities on our global calendar.
“This is my first visit to South Africa and having now seen the beauty of the Mother City, I feel confident that he is right.”
“The public has been crying out for an open-wheel, street-circuit race and we are now answering those cries,” Race promoter Iain Banner added. “With Table Mountain as the backdrop and Robben Island in the foreground, I have no doubt the ABB FIA Formula E World Championship will garner substantial support in Cape Town and throughout South Africa.”