Established and run as a garrison for a long time, Katima Mulilo still shows signs of its military role today. In the city centre was the South African Defence Force military base, almost every house had a bomb shelter. The town benefited from the military presence in terms of infrastructure and employment, and there are still a number of military bases surrounding the town.
Since the opening of the Katima Mulilo Bridge in 2004 that spans the Zambezi River and connects the Zambian Copperbelt with the Namibian deep sea harbour at Walvis Bay, Katima Mulilo has become a boom town that attracts significant investment. This development has, however, also fanned illegal business activities, and driven the establishment of shanty towns to an extent that endangers social stability.
The town features an Export Processing Zone and the largest open market in Namibia. There is an important international electricity inter�link facility, the Caprivi Link Inter�Connector; its inauguration has improved the power supply to the town. The Zambezi Waterfront Tourism project is currently under construction. The Caprivi Vision, a newspaper from and for the Caprivi, is published in town.
Since being proclaimed a town on 2 October 1999, development has been steady but Katima Mulilo does not yet compare to more established towns and cities in Namibia. Few streets are tarred, and there is a lack of street lights and sewerage. The town does not have a single traffic light. Many residents use the bushes for lack of toilet facilities, and there have been many outbreaks of diseases such as diarrhea.
The town has been affected by corruption, financial mismanagement, and infighting between councillors ever since SWAPO took the majority on town council in 1998. Water supply has been unstable because money is owed to the national water supplier, NamWater
