"Minister Fikile Mbalula notes the CGF statement on its review of SA's successful bid to host the games..."
She said the federation would keep talking to South Africa "and remains committed to realising the shared ambitions of a future Commonwealth Games in Africa".
Officials in Liverpool have already said the city can step in as a replacement for Durban, which would have been the first African city to host the Games.
Durban was awarded the Games in 2015, after preferred option Edmonton, in Canada, pulled out after local opposition.
News that Durban had pulled out came on the day the Queen started the countdown to the 2018 Games in Gold Coast, Australia, by launching a baton relay at Buckingham Palace.
"It's a big disappointment for Africa", South African Olympic committee president and CGF vice president Gideon Sam told The Associated Press. But without the necessary Government guarantees, we couldn't move on.
South Africa has also been touted as a possible Olympic host, and was considering bidding for the Summer Games in as early as 2028. Boston, Hamburg, Rome and Budapest have all dropped out of the running for the 2024 Games, leaving only Los Angeles and Paris in contention.
However, there could be competition from the other side of the world - "Auckland has pretty much everything needed to host a Commonwealth Games", says the New Zealand Herald.
"We had hoped to make this a Games for all of Africa, and so this is a very sad day for the whole continent."
"But, having measured the progress made by Durban 2022 against the bid commitments, we felt we had no choice to take this decision".
"That is due to be completed in the coming weeks and we are in close contact with the Government about the developing situation".
The CGF is actively looking for a replacement destination and two United Kingdom cities, Liverpool and Birmingham, are interested with Liverpool already throwing the hat in the ring.
The Durban 2022 organizing committee had committed to a budget of $492 million which had already been set aside however spiraling costs had raised the price tag to over $607 million.