Nine shacks were destroyed by fire in the Barcelona informal settlement in Gugulethu yesterday.
At least 27 people have been displaced.
Three fire engines, three water tankers and a rescue vehicle with 23 staff members were dispatched to the scene at 1.30am.
The fire was extinguished in under two hours.
No injuries were reported. The cause of the fire will be investigated.
The South African Social Security Agency (Sassa) has been informed to provide humanitarian relief.