Zambia’s State Firm Puts Ndola Refinery at US$1.2 Billion
The Industrial Development Corporation says the Ndola refinery will cost US$1.2 billion, but the licensed value is US$1.1 billion. The project is already under construction. The post Zambia’s State Firm Puts Ndola Refinery at US$1.2 Billion appeared first on The Rio Times .
The Industrial Development Corporation (IDC) has disclosed that construction of the Ndola refinery in Zambia will cost US$1.2 billion, exceeding the licensed amount of US$1.1 billion. The refinery, being built by the joint venture Zambia Petrochemical Energy Company (ZPEC) consisting of IDC and China’s Fujian Xiang Xin Corporation, will produce 3 million tonnes of fuel per year, approximately 60,000 barrels per day.
The project is scheduled for completion by the end of 2028. ZPEC received an investment licence from the Zambia Development Agency in November 2025 and signed an investment protection agreement in May 2026, with environmental approval granted by ZEMA in June 2026. The initial groundbreaking ceremony took place on April 10, 2026.
However, the licensed value of the project does not align with the actual estimated cost as disclosed by IDC, leaving the reason for this discrepancy unexplained. ZPEC's cost is about 9 percent higher than the licensed value, which is significant for a project of this scale. Zambia, being landlocked, has not refined fuel since 2022, with the former Indeni refinery ceasing operations in that year.
The new refinery will be responsible for importing crude oil from the Middle East and Angola, with the method of shipment yet to be determined. Currently, Zambia relies on imported finished fuel, but the new refinery could potentially reduce the country's dependence on such imports.
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