The business community and residents of Katima Mulilo say a lack of consultation on development matters by the council has resulted in stagnation.
They raised this concern during a consultative meeting with the Minister for Urban and Rural Development, James Sankwasa.
Sankwasa said the business community has failed to keep the town clean and developed.
At the meeting, macrobusiness owners claimed that foreign businesses are favoured when it comes to land provision at the expense of locals and left to rent space at exorbitant fees.
Some residents suggested completely removing the bar area in the town centre, noting that having too many shebeens there has contributed to criminal activities, noise pollution, and created a bad image for the town.
Priority, they say, should be towards infrastructure that contributes to job creation, and that tenders should be given to businesses that deliver.