IDC and Fujian Xiang Xin Sign a Strategic MoU with ZDA to Advance Energy Security in Zambia
A new US$1.1 billion refinery in Ndola will reduce Zambia’s fuel imports, generate thousands of jobs, and drive regional growth beginning in 2026. Zambia has formalized a $1.1 billion agreement with China’s Fujian Xiang Xin Corporation to build a new oil refinery and integrated energy complex in Ndola, Copperbelt Province. The initiative targets a capacity of 60,000 barrels per day, aiming to satisfy all of Zambia’s current fuel demand while generating surplus for regional export. Construction is slated to begin in Q3 2025, with the first phase of operations expected in 2026. The project is set to generate roughly 2,200 jobs during construction and provide more than 3,000 direct and indirect roles once fully operational. A 130 MW cogeneration power plant will accompany the refinery, with up to 100 MW delivered to the national grid, enhancing local energy stability.
By Kelly Njombo
THE Industrial Development Corporation (IDC) and Fujian Xiang Xin Corporation (FJXX) have signed Memorandum of Understanding (MoU) with the Zambia Development Agency (ZDA) to develop a US$1.1 billion state-of-the-art crude-oil refinery and integrated energy complex in Ndola.
The planned facility will process three million tonnes of crude oil annually, approximately 60,000 barrels per day, providing enough refined product to satisfy Zambia’s entire current fuel demand.
According to a joint statement issued by ZDA and IDC, once completed, the facility will create scope for future exports to neighbouring markets, with its ground-breaking targeted for the third quarter of 2025, and commercial operations of the first phase expected next year.
During construction, the project will generate about 2,200 jobs across civil works, mechanical and electrical installation, and logistics.
Zambia has formalized a $1.1 billion agreement with China’s Fujian Xiang Xin Corporation to build a new oil refinery and integrated energy complex in Ndola, Copperbelt Province. The initiative targets a capacity of 60,000 barrels per day, aiming to satisfy all of Zambia’s current fuel demand while generating surplus for regional export.
Construction is slated to begin in Q3 2025, with the first phase of operations expected in 2026. The project is set to generate roughly 2,200 jobs during construction and provide more than 3,000 direct and indirect roles once fully operational.
A 130 MW cogeneration power plant will accompany the refinery, with up to 100 MW delivered to the national grid, enhancing local energy stability.
“Extensive skills-transfer and certified training programmes will ensure local talent is equipped to manage and operate the complex to international standards. Beyond fuel production, the refinery is designed to catalyse a suite of downstream and ancillary industries”.
“It’s configuration includes units for liquefied petroleum gas bottling, bitumen production, lubricants blending, and a 130-megawatt power generation plant that will feed 100 megawatts of electricity into the national grid,” the statement reads.
It says the project will stimulate investment in new storage facilities, rail upgrades, and provide feedstock for sectors such as plastics, fertilisers, synthetic materials, and asphalt manufacturing.
The statement further says that small and medium enterprises stand to benefit through opportunities in haulage, catering, equipment maintenance, and professional services.
Economically, the refinery will significantly bolster Zambia’s energy security and self-sufficiency by eliminating dependence on imported refined products and shielding the economy from regional supply shocks.
It is projected to save the nation millions of dollars from its annual fuel import bill, strengthening the Kwacha through reduced foreign-exchange outflows.
Commenting on the development, IDC chief executive officer Cornwell Muleya noted that, positioned within an emerging Industrial Zone, the complex is expected to anchor further industrialisation and accelerate progress toward the country’s Vision 2030 goals.
“Today’s agreement turns aspiration into action. With this landmark project, we are writing a new chapter in Zambia’s industrialisation journey in keeping with the government’s objectives for cost effective energy independence for both industry and ordinary Zambians,” Mr. Muleya said.
Mr. Muleya said the Petrochemical industry is a catalyst for many other projects aimed at uplifting living standards, creating jobs and bringing economic transformation across many sectors.
And FJXX President and Chairperson Huang Tieming said the partnership will unlock opportunities in a project that will reverberate far beyond its location in Ndola, driving inclusive growth across the country and region.
“FJXX is honoured to bring its expertise in new technologies and world-class engineering to this important project in partnership with the Government of Zambia through IDC. We have over two decades of engineering, procurement and construction expertise in this industry and are honoured to participate in this transformative venture which will benefit the people of Zambia,” Mr. Huang said.
And ZDA director general Albert Halwampa said the MoU represents a decisive step forward in the implementation of Vision 2030, and toward an economy that refines, manufactures, builds and exports from Zambia.
“The MOU we have signed this day perfectly captures the spirit of Invest Zambia 2025. Bold partnerships, bringing catalytic capital and jobs for our people. It proves once again that Zambia is open for high-impact projects and future-ready investment,” Mr. Halwampa said.
