Durban will no longer be hosting the 2022 Commonwealth Games after missing a series of deadlines and financial complications, Business Day reported on Tuesday.
Durban would have been the first African country to host the games, which brings together competitors from 52 Commonwealth states.
The Commonwealth Games Federation is now looking for a new host.
South Africa would have spent R8 billion on the event, Business Day reported.
Business Day quoted Charles Preece, spokesperson for the Federated Hospitality Association of SA saying that "all things considered", Durban could not afford the games.
Gideon Sam, president of the South African Sports Confederation and Olympic Committee reportedly said the news was a "huge disappointment" for the entire continent.
"But without the necessary government guarantees, we couldn't move on," he said.
"Everybody was very excited to see the Commonwealth Games staged in Durban, which was very well-equipped to host the event, but once the economics started to play a role, it became difficult."