The Zambia Development Agency (ZDA) has signed an Investment Protection and Promotion Agreement (IPPA) with Zambia Petrochemical Energy Company Limited (ZPEC), marking another major milestone in the development of the planned US$1 billion petroleum refinery in Ndola.
ZPEC, a joint venture between the Industrial Development Corporation (IDC) and China’s Fujian Xian Xin, is spearheading the project, which is expected to process up to 60,000 barrels of crude oil per day once operational. The refinery is anticipated to play a key role in strengthening Zambia’s energy security while supporting industrial growth across the region.
Speaking during the signing ceremony, IDC Chief Executive Officer Mr Cornwell Muleya said the agreement signified continued progress towards the realization of the refinery project, following the recent groundbreaking ceremony held in Ndola.
Mr Muleya said the groundbreaking event demonstrated the commitment of all stakeholders and paved the way for construction works to commence later this year. He expressed optimism that by next year, visible progress would have been made on the project.
“We are very happy that we’re reaching this stage,” Mr Muleya said. “We are looking forward to the actualization of our project and by this time next year, we hope there will be very visible signs of what we would have achieved.”
He also commended the ZDA for its collaboration and support in ensuring policy alignment and compliance with all procedures required for the government to fully support the initiative.
Mr Muleya noted that the refinery’s benefits would extend beyond energy security, saying the project would positively impact the lives of many Zambians through economic growth and job creation.
Meanwhile, ZDA Director General Mr Albert Halwampa said the signing of the IPPA sends a strong signal to investors that Zambia remains a safe and attractive investment destination.
Mr Halwampa said the agreement assured investors of the security of their investments and highlighted Zambia’s peaceful environment and stable policy framework.
“We’re very proud to have signed the IPPA because it gives you the assurance that you’re investing in a country that’s safe and peaceful…and your returns on investment are safe,” he said.
He added that the refinery project comes at a critical time when global geopolitical tensions continue to disrupt oil supply chains, emphasizing that the facility would not only serve Zambia but the wider region as demand for energy increases alongside the country’s push to raise copper production to three million metric tonnes.
Mr Halwaampa added that huge investments like these were a result of President Hakainde Hichilema’s leadership in the pursuit for investment promotions and stable business policies for the country.
