Strategic Partnership Delivers Game-Changing Oil Refinery for Zambian Economy

In a significant milestone for Zambia's economic development, the Zambia Development Agency has issued an investment license to China Zambia Petrochemical Corporation (CZPC) for a transformative $1.1 billion crude oil refinery project. The venture represents a strategic partnership between the state-owned Industrial Development Corporation (IDC) and China's Fujian Xiang Xin Corporation.

The license handover signals the government's commitment to advancing Zambia's industrial capacity and energy security. The three-million-ton-per-annum facility is now transitioning from the planning stage to active implementation, with construction scheduled to commence in the coming weeks. Under the government's accelerated development timeline, Phase 1 of the refinery is projected to become operational by 2026.

"Through CZPC, we are driving a transformative venture that will create jobs, enhance national self-sufficiency and support long-term economic growth," stated Cornwell Muleya, CEO of the Industrial Development Corporation, highlighting the project's alignment with Zambia's national development objectives.

Once fully operational, the facility will eliminate Zambia's dependence on imported petroleum products by meeting the nation's entire domestic fuel demand. The project is also expected to strengthen regional energy security across Southern Africa, positioning Zambia as a potential energy hub.

The economic impact extends well beyond energy security. During peak construction, the project will generate approximately 2,200 jobs, demonstrating the government's focus on employment creation. Once operational, the refinery will sustain 600 direct positions and support an estimated 2,000 indirect jobs throughout the value chain.

In line with Zambia's economic diversification agenda, the refinery will also catalyse downstream industrial development. Planned facilities include LPG bottling plants, bitumen production units and lubricant blending operations. These additions are expected to create substantial opportunities for small and medium enterprises in logistics, maintenance and specialised technical services, furthering the government's commitment to broad-based economic participation and private sector growth.