Zambia signs $1.1 billion deal to build crude oil refinery in Ndola
Zambia is set to make a major leap in its energy sector with the signing of a $1.1 billion agreement to develop a large-scale crude oil refinery and energy complex in Ndola, in the country’s Copperbelt region.
Announced by the government on Monday, the landmark deal is part of a broader strategy to reduce dependence on imported fuel, strengthen domestic energy production, and boost industrial output. The new facility is expected to process up to 60,000 barrels of crude oil per day enough to meet Zambia’s current fuel needs and even support exports to neighbouring countries.
The agreement was signed between the state-owned Industrial Development Corporation (IDC) and China’s Fujian Xiang Xin Corporation. Under the plan, construction of the refinery will begin in the third quarter of 2025, with commercial operations scheduled to start in 2026.
The IDC noted that the crude oil will be imported from the Middle East and transported through Tanzania’s Dar es Salaam port, highlighting regional trade cooperation in fuelling the project.
Once completed, the refinery will significantly reduce Zambia’s annual fuel import costs, helping the country save millions of dollars. The facility won’t just focus on crude oil processing. It will also include key infrastructure such as a liquefied petroleum gas (LPG) bottling plant, bitumen production units, lubricant blending facilities, and a 130-megawatt power plant all aimed at expanding Zambia’s energy and industrial capabilities.
Speaking on the project, a representative from the IDC said, “This is more than just a refinery, it’s a comprehensive energy complex that will create jobs, strengthen our economy, and place Zambia in a stronger position in the regional energy market.”
Strengthening Regional Ties: Zambia Takes Stake in Angola’s Lobito Refinery
Zambia is also looking beyond its borders to secure long-term energy security. The country has acquired an equity stake in Angola’s Lobito refinery project, a separate but complementary investment in the country’s energy future.
Located in Benguela Province along Angola’s Atlantic Coast, the Lobito refinery is currently under construction and is expected to be completed by 2026. Once operational, it will have the capacity to process 200,000 barrels of crude oil per day, making it one of the largest refineries in the region.
Under the current arrangement, Zambia and other private investors will collectively hold a 70% ownership stake in the Lobito project, while Angola’s national oil company, Sonangol, will retain 30%.
Zambian President Hakainde Hichilema had previously announced the country’s intention to invest in the refinery as part of a long-term effort to diversify energy sources and ensure fuel supply stability. The move reflects Zambia’s proactive approach to energy development combining domestic infrastructure investment with strategic international partnerships.
The twin approach of building its own refinery while investing in regional capacity is seen by analysts as a smart strategy. It gives Zambia more control over fuel sourcing, reduces vulnerability to global supply chain disruptions, and opens up potential for economic growth through exports and regional energy trade.
As both the Ndola and Lobito projects move forward, expectations are high that Zambia will transform its energy sector into a key driver of national development. If executed successfully, the developments could mark a turning point for Zambia shifting the country from a fuel importer to a regional energy player.
With construction set to begin in 2025 and both projects aiming for a 2026 launch, Zambia’s energy future is looking brighter than ever.
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