Concerns had been raised over the financing of the Games  after KwaZulu-Natal Finance MEC Belinda Scott admitted in March that the province would not be able to contribute ZAR580 million (£26 million/$38 million/€34 million) as initially promised, to help stage the event.

The matter was brought to the attention of the National Treasury to make them aware that they would need to help provide the funding.

It was claimed last week that the National Treasury had not offered final assurances or paid the first host city payment Commonwealth Games Federation (CGF), with Durban 2022 chairman Mark Alexander admitting he had “no idea when the guarantees will be signed and the money paid”.

The CGF sought to downplay concerns by stating that they had been reassured that the first payment would be received after governance and structures were finalised.

The South African Sports Confederation and Olympic Committee (SASCOC) had also missed a deadline set by the Commonwealth Games Federation to establish an Organising Committee.

They had been given a cut-off point for the appointment of an Organising Committee of February 29 following a recommendation from the CGF that it be in place within 180 days of the General Assembly.

Mbalula has now confirmed that the Finance Minister Pravin Gordhan has provided the guarantees and reiterated that the South African Government remained committed to delivering the first Commonwealth Games on African soil.

“We can now confirm that the processes relating to the finance guarantee have been finalised after due consideration of all factors by the Fiscal Liability Committee and the National Treasury as it is required by South African law, specifically section 66 read with section 70 of the Public Finance Management Act (Act no.1 of 1998),” Mbalula said.

“The Minister of Finance has now signed the finance guarantee to the Commonwealth Games Federation.

“This has now paved the way for government to convene the Inter-Ministerial Committee on the Games.

“The IMC that will be chaired by the Hon. Deputy President of the Republic of South Africa, Cyril Ramaphosa, will conclude the work of the bidding company and wind its affairs down and also constitute a hosting company that will act as a Local Organising Committee.

“The South African Government through the Department of Sport and Recreation South Africa as a lead department remains committed to the hosting of these Games and remains confident that South Africa will deliver quality and highly successful Games.”

The guarantees will come as a boost to the city, who were awarded the Games on September 2 in Auckland, ahead of the CGF Executive Board meeting later this week in London.

“We look forward to continuing our positive and ambitious discussions with the South African Government and welcome the coordination of an Inter-Ministerial Committee, chaired by South Africa’s Deputy President Cyril Ramaphosa, to begin the important task of establishing the Local Organising Committee,” said Louise Martin, CGF President.

“These are the first steps on an exciting journey towards 2022, and we look forward to working with Government and indeed all citizens, communities and athletes in South Africa to deliver an inspiring and inclusive Games for everyone.”

Durban 2022 has budgeted ZAR6.4 billion (£313 million/$481 million/€430 million) to stage the Games.

South Africa's Cabinet estimated that they could generate ZAR20 billion (£975 million/$1.5 billion/€1.4 billion) in output.

That would give the country's gross domestic product a boost of ZAR11 billion (£537 million/$827 million/€739 million) and provide employment opportunities for at least 11,500 people.