Energy Minister Makozo Chikote has officially launched the construction of a US$1.1 billion crude oil refinery in Ndola, a major development expected to improve Zambia’s transport and logistics sector.
The refinery project is being developed by Fujian Xiang Xin Corporation in partnership with the Zambia Petrochemical Energy Company (ZPEC). Once completed, the facility will have the capacity to process about 60,000 barrels of oil per day, helping Zambia meet its growing fuel demand. Construction is expected to take about 18 months.
Although the project mainly falls under the energy sector, it is expected to bring strong benefits to transport and logistics. One of the biggest advantages will be improved fuel availability. Currently, Zambia depends heavily on imported fuel, which can sometimes lead to shortages and delays. With a local refinery in place, the country will have a more reliable fuel supply, helping transport systems run more smoothly.
Fuel is a key requirement in the movement of goods and people. Trucks, trains, and other transport services depend on consistent fuel supply to operate efficiently. By producing fuel locally, the refinery will help reduce disruptions and improve the overall performance of the logistics sector. This is especially important for industries such as mining, which rely on transport to move large volumes of goods.
The project will also create more logistics activities across the supply chain. Crude oil will need to be transported to the refinery using different modes such as pipelines, rail, or road transport. After processing, the finished petroleum products will be distributed to different parts of Zambia and even exported to neighboring countries. This will increase demand for freight services, storage facilities, and distribution networks.
In addition, the location of Ndola makes it a strategic hub for logistics. The city is close to key mining regions and major trade routes that connect Zambia to countries like the Democratic Republic of Congo. This makes it easier to move fuel and other goods across borders, supporting regional trade and economic growth.
Speaking during the groundbreaking ceremony, Chikote said the project will play an important role in supporting key industries and improving the country’s economy. He also praised President Hakainde Hichilema for his leadership and vision in promoting investment and development.
The Ndola oil refinery is more than just an energy project. It is a key infrastructure investment that will also strengthen transport and logistics in Zambia. By improving fuel supply, supporting supply chains, and boosting regional trade, the project is expected to make the movement of goods more efficient and reliable across the country.
