Zambia has signed a landmark agreement with China’s Fujian Xiang Xin Corporation to build a $1.1 billion crude oil refinery, aiming to drastically cut fuel imports and transform the country into a regional hub for refined petroleum products.
The facility, to be located in Ndola in the Copperbelt Province, will have a daily processing capacity of 60,000 barrels and is set to meet Zambia’s entire domestic fuel demand upon completion.
The project, spearheaded by the Industrial Development Corporation (IDC) of Zambia, is scheduled to break ground in Q3 2025, with commercial operations expected by 2026. The refinery complex will also include liquefied petroleum gas (LPG) bottling, bitumen production, a lubricant blending plant, and a 130 MW power plant, adding significant value across the energy chain.
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Crude oil will be sourced from the Middle East and transported via Tanzania’s Port of Dar Es Salaam, in line with Zambia’s strategy to diversify supply routes and strengthen energy resilience. The IDC noted that the refinery could save Zambia hundreds of millions of dollars annually, currently spent on fuel imports, while cushioning the economy from external oil price shocks and foreign exchange fluctuations.
The development also supports Zambia’s broader industrialisation and trade ambitions, with the refinery positioned to export refined products to regional markets including the DRC, Zimbabwe, and Malawi. Officials anticipate job creation, infrastructure development, and enhanced GDP contributions.
“This marks a pivotal step in our energy security strategy and our commitment to reducing import dependency,” an IDC spokesperson said.
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President Hakainde Hichilema’s administration has prioritised foreign direct investment and energy sector reform as key levers for long-term growth.
