The Western Cape government will foot the bill for the statue within their budget of around R3.5 million.
The plan is to erect a statue on the balcony at City Hall where Madiba delivered his first public address following his release from the then Victor Verster prison on 11 February 1990.
The City will spend approximately R1.3 million to fund a permanent exhibition at City Hall to commemorate the stalwart's legacy.