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Have put "Citation needed". If you have stronger reasons for believing this untrue than not having heard of it, I'll move it here to await anyone keen enough to research it.
DONE
What should this bit say? Does the area have any connection with these peoples? If so, what? (If this was the "designated homeland" for these peoples, then we can say so while making the ridiculousness of the premise clear). Need more info to do good job of this, or can cut all ref.
In the same year the name was changed to "QwaQwa" to avoid an ethnic identification.
What is an ethnic identification and why would one want to avoid it? If I had to guess I would say the intended meaning, "KwaKwa looks like a word associated with a particular ethic group other than the Bakoena and the Batlokoa". If that is the case, what is the ethnic group in question? I see that on FOTW Franc M.A. Van Diest states "In 1969 the area was combined into a single territory, and called KwaKwa (until it was realised that this spelling would make them part of a West African sub-group), later that year it was changed to Qwaqwa" which narrows the search area somewhat, although it's not clear if Van Diest meant West Africa or western South Africa. There are a few possible candidates at Kwa (disambiguation).