Goma Faces Economic and Financial Crisis After M23 Takeover

The city of Goma in DR Congo is grappling with a severe economic and financial crisis following the takeover by M23 rebels. Read more on the situation.

The formerly bustling streets of Goma, the capital of North Kivu in eastern Democratic Republic of Congo, are now strikingly silent.

The city has been facing an unparalleled economic and financial crisis since the Rwanda-backed M23 rebels seized control last month.

Businesses are fighting to stay afloat, financial transactions have become nearly impossible, and people are finding it difficult to make ends meet.

Gaston Mumbere, who lives in Goma, is uncertain about how he will cover his bills at the end of February.

“We are experiencing significant hardship, and our families are similarly affected by the stagnation of money among people. With banks not operational, we’re coming to understand that while weapons can take lives, hunger poses an equally deadly threat,” he stated.

The shutdown of banks and cooperatives, directly resulting from the ongoing insecurity in the city, is crippling monetary transactions and negatively impacting the daily lives of its two million residents.

In Virunga, at the town’s main market, vendors often find it difficult to attract customers and occasionally return home empty-handed.

Collette Musumba, who sells beans at the market, shared her challenges: “We used to make up to 100,000 Congolese francs ($36), but now it’s difficult to earn even 30,000 francs ($11). I don’t sell much during the day and often have to close early so I can go home and cook for my children.”

Local government and business employees still have not received their salaries since the city fell under M23 control.

This situation has caused analysts to worry about the potential collapse of the city’s economic system, where, according to the United Nations, the humanitarian conditions are already alarming.

Deogracias Bengehya, an economics professor at Goma University, states that customers have lost trust in banks and microfinance institutions (MFIs).

“MFIs will face greater challenges than banks. The reason is that while banks have branches in various locations, some MFIs are solely based in Goma and lack representation elsewhere,” he explained.

In mid-February, the governor of North Kivu, who was appointed by the M23 alliance, met with leaders of banking institutions in Goma.

Their goal is to promptly reopen the banks while ensuring optimal security conditions, but a solution has not yet been identified.

The ongoing financial crisis underscores the vulnerability of the economic system and emphasizes the urgent need for intervention to prevent a humanitarian disaster.