ZDA Issues Licence for $1.1 Billion Ndola Oil Refinery

The Zambia Development Agency (ZDA) has granted an investment licence to China Zambia Petrochemical Energy Corporation Limited for the establishment of a 1.1-billion-dollar crude oil refinery in Ndola.

The facility will process up to three million tonnes of crude oil annually, equivalent to approximately 60,000 barrels per day, helping Zambia to meet current fuel demand.

ZDA Director General Albert Halwampa described the project as a significant milestone in the government's industrialisation agenda during the licence handover ceremony at the Industrial Development Corporation office in Lusaka.

Mr Halwampa explained that the licence enables ZDA to provide investment incentives, including duty-free importation of machinery and equipment, reducing establishment costs.

Ground-breaking is scheduled for the third quarter of 2025, with first-phase commercial operations expected in 2026. The project will create approximately 2,200 jobs during construction and sustain 600 direct jobs plus over 2,000 indirect positions once operational.

Additionally, the refinery will feature a 130-megawatt power generation plant, with 100 megawatts feeding into the national grid, bolstering energy security.

IDC Chief Executive Officer Cornwell Muleya stated such investments are essential to national development, while Fujian Xiang Xing Chairperson Tieming Huang thanked the government for its support, confirming construction will commence immediately.

The project represents major foreign direct investment in Zambia's manufacturing sector.