Zambia has formalised an agreement to construct a $1.1 billion crude oil refinery and energy complex in Ndola, marking a significant development in the country’s efforts to enhance domestic energy production and reduce reliance on imported petroleum products. The initiative, led by Zambia’s state-owned Industrial Development Corporation (IDC) in collaboration with China’s Fujian Xiang Xin Corporation, is positioned to become a cornerstone of the nation’s energy strategy.
According to an official statement issued on 21 July 2025, the proposed facility will possess the capacity to refine approximately 60,000 barrels of crude oil per day. This volume is projected to meet Zambia’s entire current fuel demand and potentially allow for surplus output to be exported to neighbouring Southern African countries. The project is thus anticipated to generate both macroeconomic and strategic regional benefits.
The agreement outlines that construction is scheduled to commence in the third quarter of 2025, with the initial phase of commercial operations targeted for 2026. Crude oil will be sourced primarily from the Middle East and transported via the Tanzanian port of Dar es Salaam, reinforcing existing logistical and trade corridors between Zambia and East Africa.
In addition to fuel production, the complex is set to incorporate several integrated energy and industrial units. These include facilities for liquefied petroleum gas (LPG) bottling, bitumen production for road infrastructure, blending of industrial and automotive lubricants, and the development of a 130-megawatt thermal power plant. Such vertical integration is expected to increase the value derived from each barrel of imported crude and broaden the country’s industrial base.
The IDC has emphasised that the refinery will play a crucial role in improving national energy security, mitigating foreign exchange outflows associated with fuel imports, and fostering job creation in the Copperbelt Province. The project’s financing and execution plan were not disclosed in detail, although it is understood that the partnership follows a build-own-operate model with phased localisation of operations.
Ndola, historically the site of Zambia’s sole petroleum refinery—the Tazama facility—has long been a focal point for national fuel infrastructure. The forthcoming energy complex is therefore seen as both a modernisation and expansion of Zambia’s refining capacity, aimed at meeting contemporary energy standards and regional demand profiles.
While energy sector analysts acknowledge the potential of the project to enhance domestic refining capabilities, they also caution that realising these benefits will depend on adherence to construction timelines, transparency in procurement processes, and sustainable crude supply agreements. The broader geopolitical context of Chinese investment in African infrastructure also invites continued scrutiny, particularly in relation to governance, local employment, and environmental compliance.
Nonetheless, the government’s announcement aligns with Zambia’s broader economic diversification agenda and reflects regional aspirations to move from raw resource dependency to value-added industrialisation. By developing a domestic refining hub, Zambia joins a number of African countries exploring similar strategies in pursuit of energy autonomy and economic resilience.
The complex is anticipated to significantly reduce Zambia’s import bill for refined fuels, which has historically exerted pressure on its foreign reserves. Upon completion, the facility may further contribute to regional energy integration under the Southern African Development Community (SADC) framework.
While full operational capacity remains a few years away, the establishment of the Ndola energy complex represents a notable shift in Zambia’s energy infrastructure landscape and adds momentum to long-term efforts toward industrial self-sufficiency and regional energy trade.
