Zambia has signed a major agreement to build a $1.1 billion crude oil refinery and energy complex in Ndola, situated in the country’s copperbelt region. The government made the announcement on Monday.

The planned facility will have the capacity to process up to 60,000 barrels of crude oil per day, enough to meet Zambia’s entire domestic fuel demand and create room for future fuel exports to neighboring countries, according to Reuters.

A government statement revealed that the project is expected to save the country millions of dollars each year by cutting down on fuel imports.

Construction is slated to begin in the third quarter of 2025, with the first phase of commercial operations expected to start in 2026.

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The agreement was signed between Zambia’s state-owned Industrial Development Corporation (IDC) and China’s Fujian Xiang Xin Corporation.

An IDC spokesperson said crude oil for the refinery will be sourced from the Middle East and brought into the country through Tanzania’s Dar es Salaam port.

In addition to fuel refining, the energy complex will also include infrastructure for liquefied petroleum gas (LPG) bottling, bitumen production, lubricant blending, and a 130-megawatt power plant, enhancing Zambia’s overall energy and industrial capabilities.

In a separate development, Zambia has secured an equity stake in Angola’s Lobito refinery project, which is under construction in Benguela Province on the Atlantic Coast.

President Hakainde Hichilema previously announced Zambia’s plan to invest in the project, which is expected to be completed by 2026.

Once operational, the Lobito refinery is projected to process up to 200,000 barrels of crude oil per day.

Under the current agreement, private investors, including Zambia, will collectively own a 70% stake, while Angola’s state oil company, Sonangol, will hold the remaining 30%.

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