Mantashe made the announcement at Nangoza Jebe Hall in Port Elizabeth on Monday, where Deputy President Cyril Ramphosa was also addressing ANC branch structures.
There will also be a new Deputy Mayor in Bicks Ndoni and a new ANC Chief Whip in Litha Suka.
The ANC will also effect changes in the Mayoral committee, including restructuring several Directorates, as it looks to hold onto the Metro in next year's Municipal elections.
The three new elected leaders will be sworn in at a special council meeting in due course.
ANC National Spokesperson, Zizi Kodwa, says Jordaan is a natural fit for the position of Nelson Mandela Bay Mayor as he and his family have strong roots in the city.
"We have done a lot of intense consultations of what and who we think in our view may lead this municipality. As you know Danny Jordaan is a loyal member of the ANC, he was a member of parliament in the first democratic parliament, he comes from Nelson Mandele Bay, he is not a stranger here, and we thought with his collective, it will help us to make sure we accelerate service delivery in this area of Nelson Mandela."
Kodwa says the ANC feels that current Mayor Ben Fihla has done his work and was able to stabilise the municipality.
"We think that Oom Ben has done his work and I think if you look at the problems that faced this municipality before, there was issues of leadership and so on. I think that challenge has somewhere subsided he has been able to stabilise some of the contestations in the municipality. We now need to accelerate service delivery." says Kodwa.