Zambia has signed two agreements with Chinese companies for the building of a $1.1bn crude oil refinery as well as extensive cassava cultivation and processing into various chemicals.

The southern African country’s Industrial Development Corp. (IDC) CEO Cornwell Muleya and Fujian Xiang Xin Corp. president and chairman Huang Tieming, signed the deal for the development of the refinery and integrated energy complex in Ndola, Zambia’s third-largest city, a press release from IDC said. 

The facility will have capacity to process 3mn tonnes of crude oil per year, which, according to the publication, is enough to meet current demand. Groundbreaking for the project is targeted by September 2025.

Its construction phase is expected to create 2,200 jobs, 600 during its operational phase and more than 2,000 indirect ones.

"Beyond fuel production, the refinery will also include facilities for LPG bottling, bitumen production, lubricant blending, and a 130MW generation plant, which will contribute 100 MW of electricity to the national grid. The project is further expected to stimulate investments in new storage infrastructure, rail upgrades, and provide feedstock for industries such as plastics, fertilisers, synthetic materials, and asphalt manufacturing," the press release said. 

Muleya signed the second deal with a representative of PowerChina for the development of the Cassava Circular Agro-Industrial Hub.  It entails large scale cassava cultivation and processing of the crop into chemicals such as ethanol, methanol, and pyrimidine which are used in the manufacture of agrochemicals, insecticides, and related chemicals.

The investment "is projected to create approximately 1,100 industrial jobs and around 20,000 agricultural jobs, significantly contributing to employment and economic diversification in Zambia," the press release added.