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 of a state-of-the-art oil refinery in Ndola valued at over US$500 million and expected to create more than 3,500 jobs.
ZPEC, a joint venture between Industrial Development Corporation (IDC) and Fujian Xiang Xin Holding Company Limited, will produce a range of petroleum products, including Jet A1, petrol, diesel, kerosene, LPG, sulphur, and other derivatives, significantly enhancing Zambia’s energy security and industrialisation agenda.
Speaking during the signing ceremony, ZDA Director General Albert Halwampa said the project would address Zambia’s petrochemical refining needs while driving economic growth through investment and job creation.
Mr. Halwampa noted that the refinery is strategically positioned to serve both the domestic market and the wider regional markets under SADC and COMESA, while generating critical foreign exchange inflows and supporting sectors such as transport and logistics.
He commended President Hakainde Hichilema for fostering a stable and investor-friendly environment that continues to attract major investments into Zambia.
“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,” Mr Halwampa stated.
He expressed confidence that the project would be fully operational by next year and would contribute significantly to sustainable economic development.
Mr. Halwampa said the initial agreement between IDC and Fujian Xiang Xin Holding Company Limited was signed at the inaugural Invest Zambia International Conference in the presence of the president of the Republic of Zambia.
Meanwhile, IDC Chief Executive Officer Cornwell 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.
Mr Muleya explained that the IPPA framework is critical for logistical and regulatory coordination, particularly as the company prepares to transport exceptionally large, specialized refinery equipment from international ports into Ndola.
