Sharma constituted the observer mission following an invitation from the Government of South Africa.
Ghana's former foreign minister and attorney-general, Nana Addo Dankwa Akufo-Addo, will lead the observer mission.
Sharma said: "The forthcoming elections are a significant milestone for South Africa. They mark the twentieth anniversary of the country's first democratic elections, and are the first elections after the passing of former President Nelson Mandela."
The mission will observe the election process and determine whether the polls have been conducted according to the standards for democratic elections to which the country has committed itself.
Nishana Jayawickrama, Head of Section in the Commonwealth Secretariat's Political Affairs Division, will lead a three-person Secretariat team that will support the work of the observers.