Local and foreign fans, many with flags of their favourite teams painted on their faces, thronged the bars and restaurants.
A huge television screen was set up to show the draw, presented by South African Oscar winner Charlize Theron, to the excited crowds.
The draw was conducted by FIFA secretary general Jerome Valcke with South African actress Charlize Theron and the ceremony included a televised address to the world from former South African president Nelson Mandela.
It began the final countdown to next year's World Cup, the first to be held in Africa.
The country's current president Jacob Zuma appeared on stage to make the bold prediction that the trophy would stay in Africa after the continent staged the tournament for the first time.
In Image: Dancers performduring the World Cup 2010 draw at the Cape Town InternationalConvention Centre (CTICC) in Cape Town on December 4, 2009Text: Reuters