Zambia's government has signed an agreement that paves the way for the development of a $1.1 billion crude oil refinery and energy complex in Ndola in the country's copperbelt, it said on Monday.

The planned facility will process about 60,000 barrels per day of crude oil, providing enough refined products to satisfy the Southern African nation's entire current fuel demand and potentially allowing for future exports to neighbouring countries, a government statement said.

It will save the nation millions of dollars annually in fuel imports once complete, the statement added.

Officials hope construction will start in the third quarter of 2025, with a first phase of commercial operations planned for 2026.

Crude to be sourced from Middle East

The agreement was between Zambia's Industrial Development Corporation and Fujian Xiang Xin Corporation of China.

An IDC spokesperson told Reuters the refinery would source crude from the Middle East and that it would be imported through the Tanzanian port of Dar es Salaam.

As well as fuel production, the planned energy complex will include units for liquefied petroleum gas bottling, bitumen production, lubricants blending and a 130-megawatt power plant, Zambia's government said.