The announcement was made in Auckland, New Zealand.
This makes Durban the first African city to host the games.
Durban was set to run against Edmonton, but the Canadian city pulled out of the race in February citing the negative impact of the fall in oil prices worldwide.
Minister of Sport and Recreation, Fikile Mbalula, said the South African government took a deliberate decision to position the country as a tourist destination and these games will once again affirm this.
Government expects that about R20 billion in output to the economy which translates to R11 billion in Gross Domestic Product (GDP) growth will be delivered by the 2022 Commonwealth Games.
South Africa is at the great advantage because it won’t build but renovate and use existing infrastructure made possible by the 2010 FIFA World Cup.
The Commonwealth Games are held every four years and feature athletes from over 50 countries.
The next event will be held on Australia's Gold Coast in 2018.