In a groundbreaking shift toward energy independence and economic self-determination, Zambia has secured a 26% equity stake in Angola’s Benguela (Lobito) oil refinery, signaling a new chapter in intra-African collaboration. The deal, announced by energy ministers from both countries, marks Zambia’s bold transition from a fuel-importing nation to a strategic co-owner in one of the continent’s most promising energy projects.
The refinery, currently under construction in Angola’s coastal city of Lobito, is expected to become operational by 2026. Its completion will be paired with the Lobito–Lusaka fuel pipeline, which will directly connect the refinery to Zambia—cutting transportation costs, reducing dependency on overseas imports, and enhancing fuel security for one of Southern Africa’s landlocked economies.
From Passive Consumer to Strategic Partner
Zambia’s participation in the refinery goes far beyond fuel procurement. By purchasing a 26% ownership stake, Zambia becomes an equity stakeholder in production and distribution—an unprecedented step for a country that has historically been at the end of the fuel supply chain. Energy Minister Peter Kapala described the move as “a turning point in our pursuit of energy sovereignty and regional value creation.”
“This isn’t just about fuel. It’s about control, ownership, and building an Africa that keeps its value chains on the continent,” Kapala said.
Energy Security Meets Economic Vision
With the new refinery and pipeline in place, Zambia stands to benefit from:
- Lower fuel prices due to shorter supply routes
- Job creation through refinery operations and pipeline maintenance
- Reduced forex demand, as the need for fuel imports from Europe or the Gulf declines
- Stronger regional trade, in alignment with the African Continental Free Trade Area (AfCFTA)
The deal also aligns with Africa’s broader push for local beneficiation—ensuring that natural resources are refined and processed locally, rather than being exported in raw form.
A Blueprint for a New Africa
The Zambia-Angola partnership reflects a new model of pan-African development: equity over aid, cooperation over dependency. It shifts the narrative from Africa as a recipient of foreign investment to Africa as a proactive investor in its own future.
“This is not just an oil deal,” said regional economist Dr. Naledi Mwamba. “It’s a test case in how African countries can break the cycle of dependency and lead on their own terms. If this model is adopted in agriculture, mining, and telecoms, it could rewrite the continent’s development story.”
Next Steps
The construction of the Lobito–Lusaka pipeline is expected to begin in early 2026, following the refinery’s commissioning. Financing agreements are reportedly being finalized between Zambia, Angola, and several regional financial institutions, with support from the African Export-Import Bank (Afreximbank) and the Development Bank of Southern Africa.
Zambia’s investment in Angola’s refinery is more than a strategic move—it’s a symbolic pivot. A pivot toward ownership. Toward African-led development. And toward a continent determined to create, refine, and distribute its own wealth.
As Zambia co-owns its energy future, it sends a message that’s louder than oil: Africa’s future is in African hands.
Exactly how it should be. Pan African economic cooperation in trade and commerce is the only way to throw off the shackles of dependency, and to become truly independent!
Economic self-determination kikikikiki. Its a good start in as far as it means obtaining the oil from a much more financially logical supplier-yeah nearer than from Saudi Arabia. However its not as ground breaking or lets see, how else have you put it: a new model of pan-African development: because it isnt the first such venture we have been involved in.
Zambia already co-owns once Africa’s biggest energy company the ZRA on the Zambezi. Zambia and Tanzania also co-own the TAZAMA pipeline. Zambia and Italian company, AGIP used to own the Indeni Oil refinery on a 50 50 share equity until 2009 when Zambia bought them off-and then killed it off-lol. The lesson is unshackle ourselves from colonial era trade ties. Trade within first before you look further.
Positive thinking political leaders like Michael Sata refused to call Zambia a land locked country like you have stated here. It is a land-linked country. That should open our minds to the numerous business ventures (like this one) we could start right here to link Mozambique, Angola, South Africa, Rwanda Tanzania, DRC etc. The ruling party should be busy introducing subjects on such in the curriculum to prepare Zambians for this kind of ventures.
Positive move by the UPND government!!! This is great news! So glad that while visioneless people are obsessed with trivial news like the venue of a burial, the government quietly working to better Zambia.