In a historic move signaling a new era of African collaboration and economic self-reliance, Zambia has acquired a 26% equity stake in Angola’s Benguela (Lobito) oil refinery. This strategic partnership marks a significant transition for Zambia—from being a fuel importer to becoming a key stakeholder in one of Africa’s most ambitious energy infrastructure projects.
Located in the coastal city of Lobito, Angola, the refinery is currently under construction and is slated to begin operations by 2026. Complementing this development is the planned Lobito–Lusaka fuel pipeline, which will directly connect the refinery to Zambia. This pipeline promises to dramatically reduce transportation costs, limit Zambia’s reliance on costly overseas fuel imports, and bolster fuel security for the landlocked Southern African nation.
Zambia’s decision to invest in the refinery goes beyond securing a steady fuel supply—it represents a strategic acquisition of ownership in both production and distribution. Historically reliant on fuel imports, Zambia now positions itself as a key player in the regional energy landscape. Energy Minister Peter Kapala emphasized the significance of this development, calling it “a turning point in our pursuit of energy sovereignty and regional value creation.”
Minister Kapala highlighted the broader implications, stating, “This isn’t just about fuel. It’s about control, ownership, and building an Africa that keeps its value chains on the continent.”
The impact of Zambia’s stake in the Benguela refinery will extend across multiple fronts. By shortening supply chains and eliminating several middlemen, fuel costs in Zambia are expected to decrease. New employment opportunities will arise from refinery operations and the construction and maintenance of the Lobito–Lusaka pipeline. Reduced dependence on expensive fuel imports from Europe and the Gulf will ease pressure on Zambia’s foreign currency reserves. Moreover, this venture aligns perfectly with the goals of the African Continental Free Trade Area (AfCFTA), promoting intra-African trade and economic integration.
Furthermore, this move supports the broader African agenda of local beneficiation, ensuring that natural resources are processed within the continent to maximize value creation.
The Zambia-Angola partnership embodies a shift from traditional foreign aid dependency toward a model based on equity, cooperation, and mutual investment. This approach reframes Africa not as a passive recipient but as an active architect of its own development.
Regional economist Dr. Naledi Mwamba remarked, “This is not just an oil deal. 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 telecommunications, it could transform the continent’s development trajectory.”
The construction of the Lobito–Lusaka pipeline is expected to commence in early 2026, following the refinery’s commissioning. Financing arrangements are being finalized between Zambia, Angola, and regional financial institutions, with support from the African Export-Import Bank (Afreximbank) and the Development Bank of Southern Africa.
Zambia’s investment in the Benguela refinery is not just a financial transaction—it is a bold statement of intent. It signals a pivot toward African ownership, leadership, and self-determined development.
As Zambia claims its stake in the continent’s energy future, it sends a powerful message: Africa’s wealth, its growth, and its destiny are firmly in African hands.