Zambia has issued an investor licence to China Zambia Petrochemical Energy Company Limited for the construction of an oil refinery to be built in Ndola, Copperbelt Province.

The refinery project is valued at US$510.49 million, and will be developed via a special purpose vehicle (SPV) between Zambia’s Industrial Development Corporation (IDC) and Xiang Xin Holding Co. Ltd.

Located in the Sub-Sahara Gemstone Exchange Industrial Park, the refinery is expected to create 454 jobs, and the investor licence comes with incentives such as duty exemptions on equipment and machinery, reducing upfront development costs.

ZDA’s Director-General, Albert Halwampa, said the licence issuance is a major milestone that reflects growing investor confidence in Zambia. IDC’s leadership also welcomed the move, calling it a turning point for Zambia’s industrial growth.

The refinery is part of a broader $1.1 billion deal struck between Zambia’s IDC and China’s Fujian Xiang Xin Corporation, which outlines plans for a 60,000 barrels-per-day crude oil processing facility in Ndola.

If successfully completed, the refinery will significantly reduce Zambia’s dependence on imported refined petroleum products, strengthen its energy security, and act as a cornerstone for downstream industrial development.