Zambia has entered into a $1.1 billion agreement to construct a large-scale crude oil refinery and integrated energy complex in Ndola, located in the Copperbelt Province.
This strategic initiative, led by the state-owned Industrial Development Corporation (IDC) in partnership with China’s Fujian Xiang Xin Corporation, is set to reshape the country’s energy sector and reduce its reliance on imported fuel.
The planned refinery will have the capacity to process approximately 60,000 barrels of crude oil per day. This output is expected to meet Zambia’s domestic fuel requirements while also opening opportunities for export to neighboring countries in the Southern African region. The facility will be more than just a refinery, incorporating operations such as liquefied petroleum gas (LPG) bottling, bitumen production, lubricants blending, and the development of a 130-megawatt power plant that will support both the refinery’s energy needs and contribute to the national grid.
Construction is scheduled to begin in the third quarter of 2025, with partial operations expected to commence by 2026. The refinery will be supplied with crude oil primarily sourced from the Middle East. The oil will be shipped through the port of Dar es Salaam in Tanzania and transported via the existing Tazama Pipeline to Ndola. This logistical route will optimize infrastructure already in place, reducing upfront costs and maximizing efficiency.
Once operational, the new refinery is expected to provide substantial economic benefits. These include significant reductions in foreign currency outflows currently used to import refined petroleum products, the creation of thousands of jobs during construction and ongoing operations, improved fuel price stability, and enhanced energy security. Additionally, the project positions Zambia to become a net exporter of refined petroleum products, offering a new revenue stream and boosting regional trade competitiveness.
The new refinery also complements Zambia’s broader strategic investments in energy. Earlier this year, Zambia secured a 26 percent equity stake in Angola’s Lobito oil refinery, demonstrating its commitment to energy diversification and regional integration. This deal will not only offer Zambia direct access to fuel supplies from Angola but also embed the country deeper into Southern Africa’s energy infrastructure and value chain.
The new plant will effectively replace the outdated Indeni Petroleum Refinery, which was built in 1973 and has a limited refining capacity of 24,000 barrels per day. Indeni has been operating below efficiency levels due to aging infrastructure, prompting the government to seek modern, scalable alternatives.
The $1.1 billion investment forms part of a broader wave of development agreements secured during Zambia’s “Invest in Zambia International Conference” held in July 2025. This includes energy infrastructure, transport, and industrial development projects aimed at transforming Zambia from a resource-exporting country into a regional processing and logistics hub.
With the execution of this landmark deal, Zambia is poised to make significant strides toward energy independence, industrial diversification, and regional economic leadership.
