Zambia Greenlights $1.1 Billion Crude Oil Refinery in Strategic Industrial Partnership
Zambia Issues $1.1 Billion License for Major Crude Oil Refinery to Boost Energy Security and Jobs
In a landmark move for Zambia’s industrial and economic growth, the Zambia Development Agency (ZDA) has granted an investment license to China Zambia Petrochemical Corporation (CZPC) for a $1.1 billion crude oil refinery project.
The venture is a strategic collaboration between Zambia’s state-owned Industrial Development Corporation (IDC) and China’s Fujian Xiang Xin Corporation.
The license handover underscores the government’s commitment to enhancing national industrial capacity and energy security. The planned refinery, with a capacity of three million tons per year, is now moving from planning to implementation, with construction expected to begin in the coming weeks. Phase 1 of the project is projected to become operational by 2026, in line with the government’s accelerated industrial development timeline.
Driving Jobs and Economic Growth
“Through CZPC, we are driving a transformative venture that will create jobs, enhance national self-sufficiency, and support long-term economic growth,” said Cornwell Muleya, CEO of IDC, highlighting the project’s alignment with Zambia’s national development objectives.
Once operational, the refinery will eliminate Zambia’s dependence on imported petroleum products, meeting the country’s full domestic fuel demand. The project is also expected to strengthen regional energy security in Southern Africa, positioning Zambia as a potential energy hub.
The project will have a significant economic impact:
2,200 jobs during peak construction
600 direct positions once operational
2,000 indirect jobs along the supply chain
Catalyzing Downstream Industrial Development
Aligned with Zambia’s economic diversification agenda, the refinery will spur downstream industries, including:
LPG bottling plants
Bitumen production units
Lubricant blending facilities
These operations are anticipated to generate opportunities for small and medium enterprises in logistics, maintenance, and specialized technical services, furthering inclusive economic growth and private-sector participation.
This initiative marks a major step in Zambia’s pursuit of energy self-sufficiency, industrialization, and job creation, reinforcing the country’s position as a growing hub for regional energy and industrial development.
