Goma faces an economic crisis as M23 rebels tighten control, shutting banks and crippling businesses. Residents struggle with financial hardships, raising fears of a humanitarian disaster.

Goma Faces Economic Collapse as M23 Rebels Tighten Control

The once-bustling streets of Goma, the capital of North Kivu in eastern Democratic Republic of Congo, have fallen silent amid an unprecedented economic and financial crisis. Since Rwanda-backed M23 rebels took control of the city last month, businesses have struggled to survive, financial transactions have nearly halted, and residents are facing growing hardship.

Gaston Mumbere, a local resident, fears he won’t be able to pay his bills at the end of February.
“We are suffering a lot, and our families are also victims of the lack of circulation of money between people. The banks are not functioning, and now we are realizing that weapons kill people, but hunger will also kill us,” he said.

The closure of banks and cooperatives, a direct consequence of the city’s insecurity, has paralyzed monetary transactions and disrupted the lives of its two million residents. At Virunga, Goma’s main market, vendors struggle to find buyers and often return home empty-handed.

"We used to earn up to 100,000 Congolese francs ($36), but today it's hard to earn even 30,000 Congolese francs ($11). I don't sell much in a day, and I close the goods to go home and cook for the children," said Collette Musumba, a bean seller at the market.

Even local government and business employees have yet to receive their salaries since the M23 took control. The worsening situation has led analysts to warn of an imminent economic collapse, with the United Nations already calling the humanitarian situation alarming.

Deogracias Bengehya, an economics professor at Goma University, noted that trust in banks and microfinance institutions (MFIs) has eroded.
“MFIs will be in trouble even compared to banks. Why is that? Because the banks have representatives elsewhere, but there are MFIs that are not represented elsewhere and are only in Goma,” he explained.

In mid-February, North Kivu’s governor, appointed by the M23 alliance, met with banking officials in Goma to discuss reopening financial institutions under secure conditions. However, no solution has been reached.

The crisis underscores the fragility of Goma’s economic system and the urgent need for intervention to prevent a humanitarian catastrophe.