Caprivi African National Union (CANU) were staying and conducting political activism. As a response to this development, Nghweeze (which literally means "stab me") township was established to enable some degree of control over Blacks by only allowing local workers and their families to take up residence. At the same time the central parts of Katima Mulilo were declared the Katima Mulilo Proper residential area and restricted to Whites. Contract workers from the company Lewis Construction from Salisbury (today's Harare) in South Rhodesia (today's Zimbabwe) that built Nghweeze camped in an area that for this heritage is named the Lewis informal settlement. The town had only 575 inhabitants at that time but grew to over 5,000 by 1978.
In 1971 the area around Katima Mulilo got involved in the South African Border War. As in World War II, it was a strategically important location, this time due to troop transports into and out of Zambia and Angola.
The settlement also was at the centre of the Caprivi conflict in the 1990s, an armed conflict between the Caprivi Liberation Army (CLA), a rebel group working for the secession of the Caprivi Strip, and the Namibian government. In the early hours of 2 August 1999, CLA launched an attack occupying the state-run radio station and attacking a police station, the Wanella border post, and an army base. A state of emergency was declared in the province, and the government arrested alleged CLA supporters
