The primary purpose of a marketing system has been assumed to be one of distribution - to distribute goods from those who produce to those who consume in an orderly manner consistent with the rules and preference of individuals, government and society. Since most of the people in the Kavango and the Caprivi rely heavily on agriculture and practise subsistence farming, it has to be established whether a market is present and how well it functions. Settlements in both the areas are located along the rivers, flood plains and the main roads. Since 1960 the population has increased as indicated in Table 1.