Zambia’s State Firm Estimates Ndola Refinery Cost at US$1.2 Billion

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Zambia’s Industrial Development Corporation (IDC) chief executive Cornwell Muleya announced that the new Ndola refinery project will cost US$1.2 billion, exceeding the US$1.1 billion value stated in its investment license. The facility, a joint venture between the state-owned IDC and China’s Fujian Xiang Xin Corporation known as the Zambia Petrochemical Energy Company, aims to produce 60,000 barrels of fuel per day upon its projected completion in late 2028. This development occurs as Zambia remains without domestic refining capacity since 2022 and currently lacks a sitting cabinet following President Hakainde Hichilema’s September 2026 inauguration. The refinery is intended to address high fuel costs, though the logistical method for transporting imported crude to the Copperbelt facility remains unresolved.

Consequences

The unexplained US$100 million discrepancy between the licensed cost and the current estimate may invite scrutiny, particularly as Zambia continues its financial recovery following a 2024 debt default. Furthermore, the operational success of the refinery remains contingent upon determining a method to transport crude oil to Ndola, as existing pipeline infrastructure is currently configured for refined fuel products.

Sources

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