Zambia Makes Power Moves with Investments in Oil...

Zambia Makes Power Moves with Investments in Oil and Solar Sectors

Oscar J Jeke- Zim Now Reporter

Zambia is making bold strides in reshaping its energy future through strategic investments in both fossil fuels and renewable energy—signaling a clear shift toward energy security, affordability, and regional integration.

In a move aimed at ending decades of reliance on costly Middle Eastern fuel imports, Zambia has secured a 26% equity stake in Angola’s Benguela Oil Refinery, currently under construction in Lobito. The facility, expected to be operational by 2026, will produce up to 200 000 barrels of refined fuel daily, with half earmarked for export to Zambia and the broader Southern African region.

“It makes no sense to import fuel from other parts of the world when we have a neighbouring producer,” President Hakainde Hichilema said during a visit to Angola. “We are correcting a historical anomaly.”

Angola’s state oil company, Sonangol, has signed a memorandum of understanding with China National Chemical Engineering Company to fast-track the refinery's construction. Zambia will participate in the project through a public-private partnership, while Angola retains a 30% ownership stake.

The refinery forms part of a larger strategy that includes the US$5 billion Angola-Zambia Oil Pipeline, which will transport refined petroleum products directly from Lobito to Lusaka across a distance of over 1,400 kilometers. The project is being promoted by Zambia’s Basali ba Liseli Resources Limited and is expected to be completed by January 2028.

Meanwhile, Zambia is rapidly scaling up its renewable energy portfolio. On Monday, President Hichilema commissioned a 100-megawatt solar power plant in Chisamba, constructed by PowerChina in under a year at a cost of US$100 million. The plant is expected to power over 30,000 households and support operations at First Quantum Minerals, a major copper producer.

“This project reflects our vision of a future powered by sustainable, clean energy,” said Hichilema at the launch. “It is a strategic investment in climate-resilient infrastructure.”

The Chisamba plant was developed by the renewable energy division of Kafue Gorge Lower Hydro Power Station and partially financed by Stanbic Bank Zambia under a 13-year power purchase agreement. Zambia’s solar capacity has grown from 134MW in 2023 to nearly 200MW in 2025, with the government targeting 1,000MW by year-end.

Energy Minister Peter Kapala confirmed that plans are underway for a second 100MW phase at Chisamba.

“We are working to fast-track energy diversification as a long-term solution to the country’s power deficits,” he said.

Zambia’s recent electricity shortages have underscored the urgency of diversifying energy sources. Hydropower, which currently accounts for over 80% of the country’s electricity, has been compromised by erratic rainfall and declining water levels.

If successful, Zambia’s dual energy strategy could stabilise the national grid, reduce the country’s US$1.2 billion annual fuel import bill, and position Lusaka as a regional energy hub—cementing its role in the Southern African power landscape.