Sixteen teams including two from Addo and one each from East London, Grahamstown and Thornhill went into the draw on Tuesday evening.
"We are confident of retaining the title, and with the experience we gained last year we aim to do better than we did in the national competition," Sundowns coach Mila Gxakuma said.
Engen's CSI coordinator, Cindy Bunde said the company was thrilled with the success of the inaugural Engen Knockout Challenge introduced last year and looked forward to many more years of developing soccer talent.
Tournament Director, Aldon September said in an area where gangsterism was rife the tournament was more than just a soccer tournament.
"It is about the dreams and aspirations of the barefoot five-year-old playing in the streets who hopes to one day run onto the park with other players," September added.
"Our biggest enemies are not the players in the opposing team but poverty and ignorance."
The teams will play a total of 48 matches, in a round-robin format before the knockout stage.
SAFA-NMB representative Tando Koboka said, officials were concerned about the level of cheating that takes places in similar tournaments, adding that the soccer body will show no mercy with defaulters.
"It is not about winning, but playing the game and I urge all coaches to not to use over-age players or to sign on guest players just to win," Koboka said.
A special feature on the opening day will be a lifeskills programme with Bafana Bafana star Jabu Pule.