The former Bafana Bafana striker replaced Eric Tinkler, who has recently joined Supersport United.
McCarthy takes over a club that is gearing up for its second season following a fairytale season that saw them lift the Telkom Knockout Cup under Tinkler.
The 39-year-old has won the Uefa Champions League with FC Porto in the 2003/04 season, and earned 80 Bafana Bafana caps in his playing career.
Benni has worked as an assistant at Sint Truiden in Belgium, but he comes highly recommended as an influential man in the dressing room, having played the mentor role to young players at Orlando Pirates.
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