Economic development, agriculture and tourism MEC Alan Winde said progress was being made in establishing the Madiba Heritage Tourism Route, which will include Robben Island, Pollsmoor prison, Drakenstein Correctional Services, Cape Town City Hall and parliament.
The statue will be of Mandela as he appears in a photograph showing him standing on the city hall balcony, making his first speech after his release from prison in 1990.
"I think everyone will remember the speech that Madiba made on the balcony of the city hall," said Winde.
He said the statue would help tourists experience "that specific moment of our history".
Last year the city unveiled a bust of the former president in the city hall.
A Mandela bust was positioned near the entrance to the National Assembly in 2014.
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