Traffic jams are defined as a condition of traffic delay (when the flow of traffic is slowed below reasonable speeds) because the number of vehicles attempting to use the road exceeds the capacity of the traffic network to manage them. . This is widely seen as a growing problem in many urban areas of Namibia as well as other countries, as the overall volume of automobile traffic in many areas continues to grow faster than the overall capacity of the transportation system. The resulting traffic slowdowns can now have many negative effects on the commercial economy and other sectors. Urban traffic congestion affects producers of economic goods and services in terms of business costs, productivity and output, as well as varying sensitivity to congestion. ()According to the 2011 survey conducted by the Washington State University Social and Economic Sciences Research Center (SESRC), it highlighted some of the impacts of congestion on economies. The results show that a high increase in the level of congestion would result in significant increases in direct costs for businesses. A recent survey of businesses in Portland, USA, highlighted a number of impacts of congestion (EDR 2005) on businesses' production costs. These include:  costly “backup drivers” to avoid missed deliveries due to unexpected delays;  loss of productivity due to missed deliveries; and reduced market accessibility and scale, including loss of market scale and reduced access to specialized labor and materials. About 60% of industries respond to rising costs and are passed on through congestion. . middle of paper......deliveries.Business adjustmentBusinesses can respond to worsening traffic congestion in a variety of ways, including moving away, closing operations, and adjusting to smaller market areas to workers, suppliers and customers, with The resulting loss of productivity summarizes the five elements of factors that affect congestion and its economic impacts, namely 1. Transportation-related investment and pricing — affecting facility capacity 2. Transportation system performance—network demand and congestion 3. Business market accessibility and location costs—operating costs related to accessibility to various locations4. Productivity effects: production levels and cost savings related to planning and market scale; and5. Economic growth – adjustments in response to changes in the cost competitiveness of business location in various urban areas.