South Africa is understood to have missed out on bids to host the last two World Cups.
In September, South African rugby chief executive Jurie Roux told the Herald he and the government had guaranteed World Rugby a 160 million pound ($308m NZD) return - more than France's minimum 150m pound and Ireland's 120m pound offer.
"It would deliver something to our country that would once again unify us," Roux told the Herald in September. "Sport unifies our country like nothing else. We are going through a time in our country where there is a lot of negativity and something like this would be positive to look forward to."
Rugby World Cup 2023 hosting decision - Why it should be Ireland
South Africa's hosting of the 1995 event, a tournament won by the Springboks after a gripping extra time final against the All Blacks, is widely considered one of the most successful and iconic in history. On and off the field, it helped unite a divided nation and finished with Nelson Mandela in all his glory.
"It's a great place to tour and I'm sure they're more than capable of hosting a successful World Cup," All Blacks flanker Jerome Kaino said. "It will be great for their country."
After the announcement, Roux promised South Africa would once again create a memorable occasion.
"We told the World Rugby Council that we would deliver a triple win tournament when we presented to them last month - a win for the game with record receipts; a win for the fans with an unforgettable tournament in a bucket-list destination and, most importantly, a win for the players with the most athlete-centric event in the tournament's history," Roux said.
"This nomination is confirmation of that belief and reward for an outstanding bid in which no detail was too small to be addressed or any question not comprehensively answered. We are 100 per cent confident that the commitments we made in our document will be delivered. We will make all of world rugby proud of South Africa 2023."
France last hosted the World Cup in 2007 but the decision is particularly disappointing for Ireland. Their bid, which finished no higher than second in all categories, passion and intimate nature had the potential to recreate special scenes felt throughout New Zealand in 2011.
World Rugby and Rugby World Cup Limited chairman Bill Beaumont felt the right recommendation had been reached.
"This is the first Rugby World Cup host selection to take place following a complete redesign of the bidding process to promote greater transparency and maximise World Rugby's hosting objectives.
"The comprehensive and independently scrutinised evaluation reaffirmed that we have three exceptional bids but it also identified South Africa as a clear leader based on performance against the key criteria, which is supported by the board in the recommendation."
As part of its vision, SA Rugby's aims to introduce 1m young South Africans to rugby between now and 2027.
Those eligible to vote in the secret ballot on 15 November are: Australia (3 votes), England (3), New Zealand (3), Scotland (3), Wales (3), Italy (3), Argentina (3), Canada (1), Japan (2), Georgia (1), Romania (1), USA (1), Asia Rugby (2), Oceania Rugby (2), Rugby Africa (2), Rugby Americas North (2), Rugby Europe (2), Sudamerica Rugby (2).
The final decision will be announced by World Rugby on 15 November, 2017.
