Zambia has signed a landmark $1.1 billion agreement to construct a crude oil refinery and integrated energy complex in Ndola, a strategic move aimed at achieving energy self-sufficiency and boosting regional trade.

The deal, announced Monday, brings together the Industrial Development Corporation (IDC) and China’s Fujian Xiang Xin Corporation (FJXX), with support from the Zambia Development Agency (ZDA). The facility will process 60,000 barrels of crude oil per day, enough to meet Zambia’s entire fuel demand and generate surplus for export to neighboring countries.

Construction is scheduled to begin in Q3 2025, with the first phase of commercial operations expected in 2026. Crude oil will be imported from the Middle East via Tanzania’s Dar es Salaam port, reinforcing Zambia’s regional logistics ties.

Beyond refining petrol and diesel, the complex will include:

–LPG bottling units

-Bitumen and lubricant production

-A 130-megawatt power plant, with 100 MW fed into the national grid

The project is expected to create 2,200 jobs during construction and sustain over 3,000 direct and indirect roles once operational. It will also support skills transfer programs to train Zambians in refinery operations to international standards.

Officials say the refinery will significantly reduce Zambia’s fuel import bill, strengthen the kwacha, and shield the economy from regional supply shocks. It is also expected to catalyze investment in rail networks, storage infrastructure, and downstream industries such as plastics, fertilizers, and asphalt.

IDC CEO Cornwell Muleya described the agreement as a “major milestone” in Zambia’s industrialization journey, while FJXX Chairperson Huang Tieming pledged world-class engineering and long-term economic impact

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