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The Zambia Development Agency (ZDA) and Zambia Petrochemical Energy Company Limited (ZPEC) have signed an Investment Promotion and Protection Agreement (IPPA) for the development and operation a state-of-the-art oil refinery in Ndola worth over US$500 million.
ZPEC is a JV between Industrial Development Corporation (IDC) and Fujian Xiang Xin Holding Company Limited.
The refinery will produce a wide range of petroleum products including Jet A1, kerosene, petrol, diesel, LPG, sulphur, and other derivatives, contributing significantly to Zambia’s energy security and industrial growth.
ZDA Director-General, Albert Halwampa, expressed confidence that the project will comprehensively address national challenges regarding sufficiency in the refining of petrochemical products.
Read more: Zambia breaks ground on $1.1 billion Ndola oil refinery
“We are very positive that this project is going to bring a lot of solutions. Not just the investment value, which is in excess of US$500 million, but also creating over 3,500 jobs,” Halwampa said during the signing ceremony on Tuesday.
He commended President Hakainde Hichilema for his visionary leadership in promoting Zambia’s trade and investment landscape, describing him as the nation’s Chief Investment Officer.
“The investment landscape in Zambia is at its highest. We want to thank the Republican President, Mr Hakainde Hichilema, for providing leadership and promoting this country very effectively. It is the reason we are seeing huge projects like this one,” Halwampa stated.
He added that stable policies and strong macroeconomic fundamentals have positioned Zambia as a premier investment destination where capital is safe and guaranteed to grow.
Halwampa noted that the project was strategically positioned to serve both the domestic market and the wider regional block, including the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA).
He further said this will catalyze critical foreign exchange inflows for Zambia.
Halwampa said the project will also generate extensive backward and forward linkages in sectors such as transport and logistics, supporting the country’s national target to scale up copper production to three million metric tonnes.
He expressed optimism that the multi-million dollar investment will be fully actualized by next year, providing vital energy security and transforming the lives of ordinary Zambians through sustainable economic growth.
At the same event, IDC Director General, Cornwell Muleya, described the ZPEC refinery as a flagship project launched this year in partnership with the Fujian Changqing Corporation of China.
Muleya commended the government for instituting a painless and efficient bureaucratic framework that proves Zambia is open for global business partnerships.
“For us at IDC, we are very happy that we have reached this stage. Just a few weeks ago, we held our ground-breaking ceremony in Ndola, an event that showed commitment and paved the way for construction to begin this year,” he said.
Muleya explained that the IPPA framework was critical for logistical and regulatory coordination, particularly as the company prepares to transport exceptionally large, specialized refinery equipment from international ports into Ndola.
“We are pleased that government has a mechanism through the IPPA to guarantee that support from the ministries of transport and customs authorities, which will enable the project to be actualized,” he said.
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