The South African Chamber of Commerce & Industry (SACCI) said that the BCI is 3.6 points below the December reading of 2013 and is a matter of grave concern.
Despite five of the 13 sub-indices being positive year-on-year, the rand exchange rate made a marked negative impact.
(READ MORE: S.Africa's business confidence reaches lowest since 1999)
SACCI added that the immediate economic outlook for South Africa is largely influenced by the lower international crude oil price and electricity shortages, two developments that are contrary to each other in influencing the economy.
“The dismal performance by the rand exchange rate and a strong US dollar are main causes for not taking full advantage of the lower US dollar crude oil price,” said SACCI.
“SACCI is concerned that the electricity shortages will cause the economy to stagnate at low levels of activity. An apathetic approach to economic challenges has led to the constrained environment South Africa finds itself in. SACCI’s BCI reflects a perspective on the situation.”
(READ MORE: S.Africa's business confidence starts to pick up)