About 200 people have been displaced in a fire that spread to the Waterworks informal settlement in Grabouw.

According to Theewaterskloof municipality spokesperson, Wilfred Solomons-Johannes, 50 shacks have been destroyed.

Community halls in the area have been opened to accommodate the displaced people.

The fire reportedly started at the Elgin Fruit Juice factory at around 2pm today.

The cause has yet to be determined.