Residents struggle with damaged banknotes after rebel takeover in Bukavu

In February 2023, the M23 rebel group’s takeover of Bukavu, a city in eastern Congo, escalated ongoing conflicts in the region, which has historically struggled with stability and governance. Following the takeover, many residents began using older banknotes that were originally intended for destruction, as there was a significant shortage of new and intact currency. These perforated banknotes became a temporary solution for transactions, though their acceptance was inconsistent amongst businesses, complicating daily life for the citizens. Bukavu, located in South Kivu province, is known for its economic activities, which have been severely impacted by the rebel control and the resulting closure of banks. This situation contributes to an ongoing humanitarian crisis in the region, with estimates indicating around 7 million people displaced due to the violence and instability. The inability of the Congolese banking authorities to circulate new currency has further aggravated the economic difficulties, leading to a reliance on makeshift monetary solutions by local residents. Many citizens, including Alain Mukumiro, have expressed challenges in coping with their new reality. The use of these damaged banknotes, which are traded at unfavorable rates (approximately 10-to-1), has forced families into desperate economic conditions, often facing hunger as they navigate the uncertain acceptance of these notes in everyday transactions. Without access to the banks, local residents have been left to negotiate the complexities of informal market practices, where acceptance of these notes varies greatly. Economists and local leaders have pointed out that a lack of concerted efforts to declare the damaged notes as valid currency is critical to improving the livelihoods of those affected. The government of Congo, based in Kinshasa, has explicitly stated it will not send new banknotes to rebel-controlled areas, which means that residents in Bukavu and similar regions must adapt to these challenging economic realities for the foreseeable future.