The 39-year-old, who scored 9,265 runs at an average of 48.25 during his Test career with the Proteas, had been serving in an acting capacity since December.

Smith has signed a two-year deal with CSA and is set to remain in the position until April 2022.

"My appointment brings a degree of permanency to my position which makes planning the road ahead a lot easier," Smith said.

"There is a lot of work that still needs to be done, not just at international level but throughout our pipeline development pathways as well but I am determined to get South African cricket back to where it belongs as one of the world leaders at international level."

CSA acting chief executive Jacques Faul said Smith "bought into all the overall pillars of our strategy", including transformation.

The governing body's annual transformation targets stipulate South Africa field an average of six players of colour - two of whom must be black African - in their starting 11 in all formats over the course of a calendar year.

Smith has been criticised for the demographic of the composition of the national team and its leadership during his time as acting director of cricket.

"Graeme has made a huge impact with his energy, expertise, hard work ethic and characteristic determination and passion he has brought to the position during the six months he has served in an acting capacity," Faul added.

"He has bought into all the overall pillars of our strategy and that includes the important one of transformation. 

"As far as the technical and support teams he has put together are concerned, the black generic component amounted to more than 70 per cent across the board and the Black African component varied between 30 and 60 per cent for the Proteas for the home international season, for the Proteas for the ICC [International Cricket Council] Women’s T20 World Cup and for the ICC Under-19 World Cup, which we were privileged and proud to host."