Zambia Starts Construction of $1.1 Billion Refinery in Ndola

Zambia has officially begun construction of a $1.1 billion oil refinery in Ndola, a major industrial and mining hub in the Copperbelt Province near the border with the Democratic Republic of Congo. The project is designed to strengthen domestic fuel supply, support industrial growth, and reduce the country’s heavy reliance on imported petroleum products.

Project Overview, Timeline and Jobs

The refinery is being developed by the Zambia Petrochemical Energy Company (ZPEC), a joint venture between China’s Fujian Xiang Xin Corporation and the Industrial Development Corporation (IDC), with construction expected to be completed by the end of 2028.

During the construction phase, the project is expected to generate more than 2,200 jobs. Once operational, it will support over 600 direct jobs and more than 2,000 indirect roles across logistics, supply, and related services.

Capacity, Industrial Output and Value Addition

Speaking at the groundbreaking ceremony, Energy Minister Makozo Chikote said the facility will process 3 million metric tons of crude oil annually, equivalent to about 60,000 barrels per day. He noted that this output aligns with current national fuel requirements while also supporting key sectors such as mining, transport, and manufacturing.

The integrated energy complex will also include liquefied petroleum gas (LPG) bottling, bitumen production, and lubricant blending, expanding local value chains and reducing dependence on imported refined products. Beyond domestic supply, the government says the refinery is expected to serve neighbouring markets once local demand is met, positioning Zambia more strongly within regional fuel distribution networks.

“This transformative project reflects strong investor confidence in the country’s business-friendly environment,” Energy Minister Makozo Chikote said during the ceremony, adding that skills transfer and structured training programmes will be prioritised for local workers.

According to the Observatory of Economic Complexity (OEC), Zambia imported $2.11 billion worth of refined petroleum products in 2024, with key suppliers including Singapore, Tanzania, and the United Arab Emirates highlighting the scale of the country’s import dependency.

Once completed, the Ndola refinery is expected to strengthen domestic refining capacity, stabilise fuel supply, and reduce reliance on imports while supporting broader industrial expansion across the economy.