There had been fears people would be turned away, but the heavy rain left areas of the 95,000 capacity stadium empty.
The service is being held in front of a vociferous crowd in the FNB stadium.
Archbishop Desmond Tutu addresses the stadium, asking the crowd to be quiet - he "wants to hear a pin drop".
US President Barack Obama is welcomed by a
huge cheer from the crowd as he begins his speech, in which he
describes Mr Mandela as a "giant of history", adding: "The world thanks
you for sharing Nelson Mandela with us."
On his way to the podium, President Obama
shakes hands with Cuban President Raul Castro, an unprecedented gesture
between the leaders of two nations that have been at loggerheads for
more than half a century.
There were some boos for current South
African President Jacob Zuma, but his keynote address was respectfully
heard. He said Mr Mandela had been "one of a kind... a fearless freedom
fighter who refused to allow the brutality of the apartheid state to
stand in way of the struggle for the liberation of his people".
John Simpson, the BBC's World Affairs
Editor said: "Despite the difficulties - the driving rain and logistical
challenges - of organising this event, it must remain a source of
immense pride for South Africans that a memorial for one of their own
has attracted such an array of world dignitaries."
Those attending the service include US
President Barack Obama, UN Secretary General Ban Ki-moon, Cuban
President Raul Castro, French President Francois Hollande and British
Prime Minister David Cameron.
Nelson Mandela's widow Graca Machel
listens to the tributes including that by UN Secretary General Ban
Ki-moon who said: "Mandela hated hatred. Not the people. He showed
wholesome power of forgiveness. A unique gift."
Former British Prime Minister John Major (centre) greets former US Presidents George W Bush (right) and Bill Clinton (left).
Outside the stadium a man prepares to sell portraits of Mr Mandela.
The heavy rain continued as deputy
president of the ANC Cyril Ramaphosa addresses the crowd and welcomes
those in the stadium and those watching around South Africa and around
the world. He said: "In our tradition, when it rains when you are
buried, your gods are welcoming you to heaven."
Flags and banners are waved as the memorial gets underway just over an hour late.
There were cheers of "Winnie! Winnie!"
for ex-wife Winnie Madikizela-Mandela as she makes her way to her seat
inside the stadium.
The crowd sang and danced as they waited for the service to start inside the stadium.
South Africa's Archbishop Emeritus
Desmond Tutu, a leading figure in the struggle against apartheid earlier
said of Mandela: "He was a unifier from the moment he walked out of
prison. We are relieved that his suffering is over, but our relief is
drowned by our grief."
Since Mandela's death, Johannesburg has
been blanketed in unseasonal cloud and rain but despite this the
atmosphere inside the stadium is one of joy and celebration.
As the time for the ceremony to start
draws near some of the dignitaries arrive, including South Africa's last
white president FW De Klerk with his wife Elita.
Mr Mandela's successor as president, Thabo Mbeki arrives with his wife Zanele.
Alongside the politicians a number of
figures from the world of entertainment are attending the ceremony,
including U2's lead singer Bono and South African actress Charlize
Theron.
The former South African president died
aged 95 last Thursday and the country is observing a series of
commemorations leading up to the funeral on Sunday.
The BBC's Clive Myrie is outside the
stadium and said: "A trickle of people are still arriving on buses, but
the stadium is still only half full - it is torrential rain out here and
I'm sure that it is affecting the number of people arriving. The
"spillover" areas are said to be empty."
The ceremony is being broadcast across the world, with many in South Africa tuning in.
The memorial service is expected to last four hours.
The service is being seen as a
celebration of the life of Nelson Mandela with the crowd singing and
chanting as they arrive inside the stadium.
A mourner poses with his home-made hat as he arrives at the stadium.
Plastic sheeting is removed from chairs
on the main stage. More than 90 current heads of state or government are
expected to attend.
The crowds are in high spirits - singing and dancing and stomping their feet.
For some the long wait is too much.
Pictures of Mandela are everywhere, on banners, flags and even tattoos.
The BBC's Pumza Fihlani reported that hundreds had formed queues outside by 05:00 eager to get one of the 95,000 seats.
The country is observing a series of commemorations leading up to the funeral on Sunday.
Some of the crowd arrived early, many
singing songs from the fight against apartheid whilst waiting for
several hours to get into the stadium
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