South Africa's business confidence fell to a 30-year low in September, reflecting uncertainty over the outlook for Africa's most industrialized economy, a survey showed on Wednesday.
South African businesses are struggling to survive due to slowing economic growth since the 2009 recession.
The South African Chamber of Commerce and Industry (SACCI) monthly business climate index was 90.3 in September, down from 92.9 in August, the worst result since July 1985.
“An overview of the demand side of the economy suggests that economic conditions are tight for all actors in the economy, including consumers, investors and the public sector,” SACCI said.
“The most pressing issue in the current situation is the lack of confidence, especially among investors.”
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Investors have been nervous about Pretoria's commitment to sound economic policy since Mr Zuma replaced him as finance minister twice in less than a week without explanation in December.
Sentiment has further deteriorated as the police investigation into current Finance Minister Pravin Gordhan continues.
“Until significant concerns surrounding Finance Minister Pravin Gordhan subside, business confidence is unlikely to show signs of recovery,” said Paul Shirani, chief market analyst at XTrade.
“As dark clouds continue to hang over South Africa, fears of a possible credit downgrade increase and worse could happen.”
AngloGold Ashanti chairman Sipho Pityana on Wednesday became the latest business leader to label Zuma a “mastermind” of corruption and call for his resignation.
Wednesday's manufacturing survey showed the private sector returned to growth in September for the first time in four months, but barely stayed above the 50 mark that separates expansion from contraction.
