The term 'South American Cape' can be broken down into two crossword solutions: HORN (4 letters) and PONCHO (6 letters). HORN is a geographical feature that is a type of headland or promontory, which is a piece of land that projects out into the sea. It is often found at the end of a peninsula or an island. The most famous example of a HORN is the Cape of Good Hope in South Africa. PONCHO is a traditional garment worn by people in South America, especially in the Andes region. It is a single piece of cloth with a hole in the middle for the head and is usually made from wool or cotton. It is often decorated with colorful patterns and is used to keep warm in cold climates.