Bafana were on Wednesday evening drawn in Group A, along with Angola, Cape Verde Islands and Morocco - three countries they have never lost to since re-admission to international football in 1992.
Masinga, who was part of the all-conquering 1996 South Africa squad that claimed the AFCON title on home soil, says Bafana should not underestimate their opponents.
"I know people say it is an easy group for us but we have to realise that the same Angola were part of the World Cup in 2006," Masinga told Football411.
"And they have played many times in the AFCON so they will definitely not be pushovers. I think Cape Verde can be the surprise team in this group, because for one they are coming here after beating Cameroon and we all know Morocco is an experienced team.
"So I think it could have been better to get one of the big countries. I mean, we beat Cameroon in our first match in 1996 and it set the tone for the rest of the tournament. So when you start off with a big win, it helps with the confidence levels. I think now we are in what I could call a tricky group," he said.
Masinga, though, has expressed confidence in Bafana coach Gordon Igesund, saying he is on the right track with the national team.
"I'm confident we will reach the second round, because Gordon has been trying very hard to assemble a very strong team and you can tell he is getting there. All Bafana need is for South Africans to rally behind the team, the same way they did in 1996 and nothing is impossible," Masinga added.
Bafana will next be in action against Norway in a friendly international which will be played in Cape Town on January 8.