"Today is a great victory for the rule of law and ultimately we believe that Jacob Zuma must face prosecution and this judgement certainly affirms the view that we've always held," Democratic Alliance leader Mmusi Maimane said after the ruling.
"I congratulate my colleagues who've worked exceptionally hard on this case; it's been a long battle."
The BBC's Pumza Fihlani in Johannesburg says this is the latest legal blow for the South African president.
Last month, South Africa's highest court found that he had breached the constitution by failing to repay public money used to upgrade his private home.
It backed an earlier ruling by an anti-corruption body that said $23m (£15m) of public money had been improperly spent on Mr. Zuma's rural home in Nkandla in KwaZulu-Natal province.