The 55-year-old Igesund edged out Steve Komphela for the post after both were given a chance to make their cases to the National Executive Committee, a statement on www.safa.net confirmed.
Komphela had been caretaker coach of Bafana Bafana after the dismissal of Pitso Mosimane last month.
"It was not an easy decision as both coaches are well equipped to take Bafana Bafana forward. At the end of the day, it was a unanimous decision and we think the final verdict was in the best interest of the nation," said SAFA president Kirsten Nematandani.
Igesund, who has coached the likes of Ajax Cape Town, Orlando Pirates, Free State Stars and most recently Moroka Swallows in his homeland, has been handed a two-year contract and has been given two main objectives.
The first is to lead Bafana Bafana to at least a semi-final spot in the 2013 African Cup of Nations - which
Karabukspor avoided the drop thanks to a 3-2 home win over Fenerbahce in the Super Lig while Galatasaray celebrated its title win with a closing victory over Trabzonspor.