Nodada, who was born in Ixopo in KwaZulu-Natal but grew up in Johannesburg, was named City's Player of the Season last term in McCarthy's first year with the club.
The diminutive 23-year-old has continued to impress this campaign, receiving further recognition with his maiden Bafana Bafana call-up for the 2019 AFCON qualifiers with Seychelles on Saturday and Tuesday.
McCarthy, a former Ajax Amsterdam, FC Porto and Blackburn Rovers striker, reckons the hard-working Nodada is soon destined for a move abroad.
"I told you the Zulu boys hey, there's something in the water here in Durban my friend or in Pietermaritzburg. This side of the world you know," McCarthy said jokingly.
"Listen, I think the mentality and the work ethic is second to none. He's got talent, this boy's got talent. I think when you put in that amount of work to improve yourself, to better yourself, the only way is up. There's not a single person that would be able to keep a player like that down.
"I think he's a very intelligent boy. He knows what he wants and he asks a lot of questions, he asks for help. He always asks me lot of questions, which is tiring, but it shows in his performances. I don't mind answering the questions that he asks because he wants to improve himself.
"He wants to work on every aspect of his game. His weaknesses, he works on them. His strengths, he works on them. Sometimes I need to say, 'Hey, you are going to get a fine if you don't stop working'.
"Because ja, the kid is, believe me, he's not going to play in South Africa for long. He'll go abroad because if there's one South African player I can vouch for to make it in Europe it's that boy.
"So I'm delighted for him [over his Bafana call-up]. Maybe too little too late because the likes of him, Siphesihle Ndlovu, these players have been on form since the end of last year and the beginning of the whole season, or since December last year. Call-up only now, eish."
South Africa's record scorer previously criticised Bafana coach Stuart Baxter for not attending domestic games, making examples of matches with Bloemfontein Celtic and Free State Stars. Asked if he backs Baxter's men to come out firing at FNB Stadium this weekend, McCarthy said: "Hay baba, Stuart Baxter's problem, not my problem.
"Cape Town City [is my problem]. I know you are trying to lure me," McCarthy said with a laugh.