Zambia Signs Landmark Petrochemical Deal Set to Create Over 3,500 Jobs and Slash Fuel Import Bill

本站添加: 2026-05-22

[00:00:00]Zambia has taken a major step towards energy self-sufficiency and industrial transformation with the Zambia Development Agency ZDA formalizing a pivotal investment agreement for the country's most ambitious petrochemical project to date.

[00:00:17]The ZDA and the Zambia Petrochemical Energy Company Limited ZEPAC 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 500 US million dollars and is expected to create more than 3,500 jobs. ZEPAC is a joint venture between the Industrial Development Corporation IDC and Fujian Zijin Zinc Holding Company Limited of China. The refinery will produce a wide range of petroleum products including jet A1, kerosene, petrol, diesel, LPG, sulfur, and another derivatives contributing significantly to Zambia's energy security and industrial growth. Speaking at the signing ceremony, ZDA Director General Albert Halwampa said the project would address Zambia's petrochemical refinery needs while driving economic growth through investment and job creation noting that the refinery is strategically positioned to serve both the domestic market and wider regional markets under SADC and COMESA. The deal is well timed as Zambia currently imports all of its refined petroleum products spending about 2.11 billion dollars on such imports in 2024 sourced primarily from Singapore, Tanzania, and the United Arab Emirates. The refinery will have a processing capacity of 3 million tons per year approximately 60,000 barrels per day which the government says would be sufficient to meet the country's entire domestic fuel demand. IDC Director General Colonel Mudlua noted that IPPA framework is a critical for logistical and regulatory coordination, particularly as the company prepares to transport exceptionally large specialized refinery equipment from international ports into Ndola. He also confirmed that a groundbreaking ceremony was held in Ndola in April, marking the start of the construction. Beyond fuel production, the complex will incorporate liquefied petroleum gas bottling, bitumen production, and lubricant blending. The construction phase alone is projected to generate more than 2,200 jobs, with the operational refinery expected to support over 600 direct roles and more than 2,000 indirect positions.

[00:02:48]The project also carries a skilled development dimension with the government calling on project partners