Party leader, Mubanga, makes case for revival of Indeni Refinery, describes project as ‘dormant giant’

The Democratic People’s Party (DPP) has appealed to the government of Hakainde Hichilema to halt the decommissioning of the Indeni Petroleum Refinery.

Party president, Kafula Mubanga, said reviving the Ndola-based refinery was the “only viable path” to achieving national energy security and stabilising the Zambian Kwacha.

Describing Indeni as a “dormant giant,” Mubanga challenged the administration to reconsider its current plan of converting the facility into a fuel storage depot, warning that such a move would amount to a “surrender of national sovereignty.”

Mubanga said critics often pointed to the refinery’s 2020 performance, when it reportedly lost nearly US$5 million per month, but argued that the losses were due to management and feedstock supply challenges rather than the refinery’s infrastructure.

“In 2020, Indeni was valued as a distressed asset below US$20 million, yet its replacement cost exceeds US$800 million. To walk away from this is to throw away billions in taxpayer-funded assets. The ‘negative equity’ was a result of an inefficient ‘start-stop’ cycle, not a lack of potential,” he said.

Mubanga said the party was proposing a major modernisation programme that would require an investment of between US$410 million and US$500 million to upgrade the refinery to Euro 4/5 low sulphur fuel standards, which he believed would transform the facility into a major revenue driver for the country.

Read More: Party leader, Kalaba, cautions Zambians not to be overjoyed by promises of $1.1 billion Ndola refinery project

He said a modernised refinery could generate between US$120 million and US$150 million in annual value.

Mubanga also argued that refining crude oil locally could reduce Zambia’s fuel import bill by about US$300 million annually, helping ease pressure on the local currency.

“By removing foreign middleman margins, the party argues that fuel costs for ordinary Zambians would naturally decrease to K14 of Diesel,” he said.

He added that the party was advocating for a 49 percent equity partnership model, which would allow private investors to fund a US$150 million hydro-cracker unit needed for modern fuel production while enabling the Zambian government to retain majority ownership.

“The easiest path is to close a struggling plant. The visionary path, the path of a ‘DPP’, is to fix it. We cannot be a sovereign nation that cannot refine its own fuel,” Mubanga said.

He argued that a functional refinery would also produce bitumen for government road projects and liquefied petroleum gas (LPG) for domestic use, which he said could help reduce the country’s dependence on charcoal and protect forests.

WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.