Ruacana was developed around a major underground hydroelectric plant
linked to the nearby dam across the border in Angola at Calueque. The
dam and pumping station were bombed in a Cuban airstrike in 1988, during
the Angolan Civil War. The facility was partially repaired and today
NamPower operates three turbines producing a maximum of 240 megawatts.
In
1988, the settlement consisted of only 17 households of which 14
belonged to soldiers of the South African Defence Force while the
remaining 3 were for SWAWEK (Suidwes-Afrikaanse Water en Krag,
Afrikaans: South-West African Water and Power) families. Ruacana's
settlement status was upgraded to that of a village in 2005, and to town
in 2010.
The place normally receives an annual average rainfall of
426 millimetres (16.8 in), although in the 2010/2011 rainy season 960
millimetres (38 in) were measured.
The 600 hectares (1,500 acres)
farm Etunda is situated near Ruacana. It is run as a government
supported irrigation scheme and has been established in 1993. Half of
the farm is commercial irrigation land, the other half is allocated to
82 small-scale farmers. Etunda cultivates maize, wheat, watermelons,
bananas, and other produce