Zambia’s Industrial Development Corporation (IDC) has signed an initial agreement with China’s Fujian Xiang Xin Corporation to build the country’s first oil refinery, as well as a 130 MW power plant, as part of an integrated energy complex worth around US$1.1bn
The crude oil refinery and energy complex in Ndola would provide additional electricity for the national grid and the country’s strategic Copperbelt mining region.
The signing of a memorandum of understanding between the two parties was witnessed by President Hakainde Hichilema and Chinese Ambassador to Zambia H.E. Han Jing.
The planned facility will have the capacity to process three million metric tonnes of crude oil per year — equivalent to approximately 60,000 barrels per day — sufficient to meet Zambia’s entire current fuel demand and creating potential for exports to neighbouring countries, IDC said in a statement.
It also outlined an aggressive project delivery schedule, with work commencing this year.
“Groundbreaking for the project is targeted for the third quarter of 2025, with the first phase of commercial operations anticipated to commence in 2026,” IDC noted.
Beyond fuel production, the refinery will also include facilities for liquefied petroleum gas (LPG) bottling, bitumen production, lubricant blending, and a 130 MW generation plant, IDC added.
This will contribute 100 MW of electricity to the national grid, with some power supply being utilised to run the new energy complex and refinery set up.
“The project is further expected to stimulate investments in new storage infrastructure, rail upgrades and provide feedstock for industries such as plastics, fertilisers, synthetic materials and asphalt manufacturing,” IDC added.
Potentially, self-sufficiency in fuel could save the nation millions of dollars annually in imports.
An IDC spokesperson told Reuters the refinery would source crude from the Middle East and that it would be imported through the Tanzanian port of Dar es Salaam.
The Democratic Republic of Congo is one potential export market, with Congo Petrol unveiling plans for an oil storage depot in Lubumbashi earlier this year.
During the construction phase, the project is expected to generate about 2,200 jobs across civil works, mechanical and electrical installations, and logistics.
Once operational, it will sustain around 600 direct jobs and more than 2,000 indirect jobs in plant operations, supply chain services, maintenance, and support roles.
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