Indeni Refinery Performs Strongly Despite Logistical Challenges

Lusaka, December 15, 2025

Indeni Oil Refinery has performed tremendously well as a refinery despite navigating significant logistical challenges over the past year, according to its Board Chairperson, Watson Lumba.

Speaking on the refinery’s operations, Lumba highlighted the support provided by the Chinese Government and Tanzanian counterparts, which has helped sustain Indeni’s operations and the broader petroleum sector. He also emphasized the strategic national importance of the facility, noting that it possesses greater storage capacity than any other firm in Zambia.

Lumba added that Indeni’s dual role as a refinery and an oil marketing company ensures the government cannot neglect its operational viability. He explained that while the refinery now holds a licence to establish fueling stations, it currently lacks the financial capacity to pursue this expansion. It is now up to the government to allow the firm to engage investors or secure loans to make the plan a reality.

The refinery’s strong performance comes amid a period of policy uncertainty. Last month, Energy Minister Makozo Chikote explained that the government’s reluctance to fund Indeni’s operations is due to a pending policy change affecting the company’s role.

Minister Chikote said the shift from crude oil processing to importing finished petroleum products has transformed Indeni into more of an oil marketing company. This change has created operational and financial gaps exceeding $250 million, limiting the government’s ability to recapitalize the refinery.

The minister added that the new policy is still being finalized and that major recapitalization commitments have been held back pending a clear strategy. Work on restructuring and financing options is ongoing, and support will follow once a viable plan is in place.