Serero missed the 2-1 loss in Praia on Friday with a hamstring complaint, but is in line to return at Moses Mabhida Stadium.
Baxter, who confirmed Serero's availability, expects an open contest tomorrow (19h00 kick-off).
“It is definitely going to be an open game considering Cape Verde would be more confident and we would go for it. Cape Verde would be feeling confident, hopeful and I foresee a very competitive game,” said Baxter.
While the Briton was disappointed with the team's last outing he took comfort from the draw between Burkina Faso and Senegal on Saturday which leaves Group D wide open after three matches.
“I am one person who doesn’t want to take things for granted because in such instances, anything is possible. We need to adjust quickly and respond to Friday’s setback.”
He added: “The good thing is that Burkina Faso and Senegal drew which means we are all even again and the race is on.”
Bafana are minus suspended centre-back Erick Mathoho following his 66th-minute dismissal at Estadio Nacional.
South Africa are third in Group D with four points - level with Senegal and a point behind leaders Senegal. Cape Verde have three points.