ZDA and ZPEC Sign Landmark $500M Protection Deal

The Zambia Development Agency and Zambia Petrochemical Energy Company Limited have formalised a key legal agreement to protect and advance the country's most significant energy investment in decades.

The Zambia Development Agency and ZPEC — a joint venture between the Industrial Development Corporation and China's Fujian Xiang Xin Corporation — have signed an Investment Promotion and Protection Agreement for the development of a state-of-the-art oil refinery in Ndola, valued at over USD 500 million.

IDC Chief Executive Cornwell Muleya explained that the IPPA framework is critical for logistical and regulatory coordination, particularly as the company prepares to transport exceptionally large, specialised refinery equipment from international ports into Ndola. He said government's support through transport ministries and customs authorities would be essential to keeping the project on track.

Construction is already under way, with the groundbreaking ceremony having taken place in April. The refinery is designed to process three million metric tonnes of crude oil per year — roughly 60,000 barrels per day — and is expected to be completed by the end of 2028.

The project is expected to create more than 2,200 jobs during the construction phase, with thousands more sustained once it becomes operational.

ZDA Director General Albert Halwampa credited President Hichilema's leadership for creating the investor confidence that is drawing projects of this scale to Zambia, saying the country's investment landscape was at its highest point in years.