The body of 61-year-old George Mills, from Greenock, was discovered at the scene of the accident, which the South African Maritime Safety Authority is now investigating.
A 49-year-old woman, from the Republic of Ireland also died, the National Sea Rescue Institute (NSRI) said.
The NSRI received reports that a yacht had capsized between Bokpunt and Gansekraal on the Western Cape just after 4.30am on Monday.
Sea rescue crafts responded along with a police dive unit but the the yacht, Tara, was discovered broken up among rocks on the shore.
The NSRI said it was not known what had caused the yacht to hit the rocks and whether it had capsized before running aground.
A spokesman said there were three crew members on board, reportedly sailing from Langebaan to Cape Town.
A 66-year-old man, also from the Republic of Ireland but resident in the Western Cape, managed to get to shore and raise the alarm.
A Foreign Office spokeswoman said: “We are liaising with local authorities and seeking further information following the tragic death of a British national in Cape Town, South Africa.”
Ireland’s Department of Foreign Affairs also confirmed it is liaising withrelatives of the Irish woman.
She had been living in the Western Cape for years.
“The department is aware of the death of an Irish citizen in the Western Cape and consular assistance is being provided,” a spokesman said.
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