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He first performed in the country in Cape Town last year when the World Cup trophy arrived in South Africa in time for the World Cup draw.
"We are very excited to be associated with this world-class performer and a song that has captured the imagination of so many people and celebrates the World Cup," said Bradford Ross, brand manager of Coca-Cola South Africa.
"When we invited him to do a celebration version, he was relatively unknown, but we felt his music hit the right note and would connect with football and music fans all over the world."
The single has been released in more than 150 markets around the world and is being used as the anthem for all elements of the global Coca-Cola marketing campaign in support of its FIFA World Cup sponsorship.
K'naan will perform at Coca-Cola sponsored events in South Africa during the World Cup, which included Trophy Tour events, and he will be appearing at Coca-Cola Happiness Stations at official FIFA Fan Fest match-viewing events.
Fans at matches of the World Cup will also hear the song's memorable five-note chorus in the stadium before each game, and at half time, and be prompted to join the "Oh, oh, oh-oh, ohhh" chorus and wave their flags via video board messages.
K'naan has performed "Wavin' Flag - Coca-Cola Celebration Mix" at more than 20 stops of the FIFA World Cup Trophy Tour by Coca-Cola, including concerts in Mexico City, Rome, London, Paris and Tokyo.
He describes his song as "Africa's unique brand of music - sounds that are rooted in ancient history, but as cool as the streets of New York."
Wavin' Flag has been changed to a celebration version to herald the 2010 FIFA World Cup, with the international version featuring Will.i.am of the Black Eyed Peas and French DJ sensation David Guetta.
K'naan will also be in action at the FIFA World Cup Kick-Off Celebration Concert at Orlando Stadium in Soweto tonight, Thursday, 10 June - the eve of the tournament's opening game. He will join a line-up that includes Alicia Keys, the Black Eyed Peas, Shakira, John Legend, Amadou and Mariam, Hugh Masekela, Vusi Mahlasela, The Parlotones, the Soweto Gospel Choir and BLK JKS.
Ajram - Arabic - http://www.youtube.com/watch?v=apeVbw02nzc
International Version - http://www.youtube.com/watch?v=fnvh579M-uM
David Bisbal - http://www.youtube.com/watch?v=UXbJQ4sQMQs&feature=related
Jane Zhang - http://www.youtube.com/watch?v=RkJdLhh7cOk&feature=related
Tattoo Coulour - http://www.youtube.com/watch?v=H-KPQa0goF4