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The Industrial Development Corporation (IDC) has reportedly signed two memorandum of understanding (MoUs) worth over US$2 billion with two major Chinese corporations, securing significant investments in Zambia’s energy and agricultural sectors.
The MoUs were signed during the inaugural Invest Zambia International Conference held at Mulungushi International Conference Centre in Lusaka on Wednesday.
The ceremony was witnessed by President Hakainde Hichilema and Chinese Ambassador to Zambia, Han Jing.
The first MoU was signed between IDC Chief Executive Officer, Cornwell Muleya and Huang Tieming, President and Chairperson of Fujian Xiang Xin Corporation.
According to the statement issued in Lusaka, the agreement sets the stage for the development of a state-of-the-art crude oil refinery and integrated energy complex in Ndola, with a total investment of US$1.1 billion.
The proposed facility will have the capacity to process 3 million metric tonnes of crude oil annually—equivalent to 60,000 barrels per day—sufficient to meet Zambia’s current fuel demand and allow for exports to neighboring countries.
“Groundbreaking for the project is targeted for the third quarter of 2025, with the first phase of commercial operations expected to begin in 2026,” Muleya said.
During construction, the project is expected to create around 2,200 jobs in civil works, mechanical and electrical installations, and logistics. Once operational, it will sustain about 600 direct jobs and more than 2,000 indirect jobs across plant operations, supply chains, maintenance, and support services.
In addition to fuel production, the refinery will include facilities for LPG bottling, bitumen production, lubricant blending, and a 130MW power plant—100MW of which will be fed into the national grid.
“The project is also expected to stimulate investments in storage infrastructure, rail upgrades, and provide feedstock for industries such as plastics, fertilizers, synthetic materials, and asphalt manufacturing,” Muleya added.
The second MoU was signed between IDC and PowerChina for the development of a Cassava Circular Agro-Industrial Hub in the Luena Farm Block.
Muleya said the project aims to drive industrial and agricultural development through the production of ethanol, methanol, and pyrimidine—key ingredients in agrochemicals and insecticides.
“It will involve extensive cassava cultivation and provide support to small-scale farmers to boost productivity and integrate them into higher-value supply chains,” he said.
The agro-industrial hub is expected to create approximately 1,100 industrial jobs and support around 20,000 agricultural jobs, contributing significantly to Zambia’s employment and economic diversification agenda.
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