The tournament is reserved for locally-based players, and will take place in South Africa from 11 January to 1 February next year.
Reacting to the draw conducted in Cairo, Egypt on Wednesday, Igesund expects his men to be tested.
“It is a tough draw, probably the toughest of the four groups but I welcome it. We are playing at home and that should galvanise us to do well. We could have drawn anyone and it could still have been tough because there are no easy matches any more in international competition. We are going to need all our best players so we can do well in this event,” said Igesund.
South Africa will open the event against Mozambique on 11 January, followed by a clash with Mali four days later before completing the group stage against Nigeria on 19 January.
“On paper this is a 'Group of Death' but there was never going to be easy teams. It will also give the boys a massive boost should they qualify for the next stage having accounted for some of the big names in the early stages. So yes, it is a tough draw but I more than welcome it,” Igesund added.
The draw ceremony was attended by CAF President Issa Hayatou and members of the CAF executive committee and chairman of the organising committee, Almamy Kabele.
Also in attendance were Safa president Kirsten Nematandani, vice-presidents Chief Mwelo Nonkonyana, Dr Danny Jordaan and Mandla Mazibuko.
Mvuzo Mbebe, who is the chief executive officer of the LOC and Dr Molefi Oliphant, who is a board member, were also at the event.
The competition will comprise of 32 games on 16 match days with Cape Town hosting two quarter-final games and the other two taking place in Mangaung and Polokwane.
The semi-finals will take place in Mangaung, whilst Cape Town will host the final and the third-place play-off.