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JOHANNESBURG (Reuters) - South African President Jacob Zuma's ability to administer tough measures needed to revive a struggling economy could be hampered by his efforts to pacify communists and labour in the ANC's fractious alliance.

As Zuma's ruling African National Congress celebrates its 98th anniversary on Saturday, its alliance with communist and labour union allies is suffering from growing infighting, mainly over policy, which threatens to change the make-up of the alliance that helped end apartheid.

The communists and unions, who helped bring Zuma into power last May, want economic policies to shift to the left and Africa's biggest economy to abandon the pro-business stance that has endeared it to investors.

Investors will be focused even closer on South Africa this year as the country hosts the 2010 soccer World Cup -- the first time the tournament is hosted in Africa.

South Africa exited its first recession in 17 years in the third quarter of 2009 but the pace of the recovery is slower than other countries. Business confidence fell in December and household and corporate finances remain tight.

Zuma's government has repeatedly said existing policies will remain in place, but has sought to appease the ANC's allies by encouraging debate over points of contention.

NO MORE "MR NICE GUY"

Analysts said it was now time Zuma provided strong leadership.