BUKAVU, Congo — Residents of Bukavu, a city in eastern Congo under control of the M23 rebel group, are relying on hole-punched and patched banknotes after banks closed and official cash deliveries stopped following the rebels’ February takeover, creating widespread confusion and economic strain.
People in the city say some shopkeepers refuse to accept the perforated bills despite serial numbers and makeshift repairs that put them back into circulation. The notes appear to be older banknotes that had been slated for destruction; residents and money-changers suspect some were stolen from bank branches during the rebel advance.
Alain Mukumiro, a 36-year-old fridge technician, said shopkeepers in his neighborhood refused the patched notes, leaving his family short of food. "All my money has serial numbers, but they refuse it," he said.
Money-changers operating on the black market in Bukavu said patched banknotes are being exchanged at steep discounts — about 10-to-1 for new notes — and are used only because there are no alternatives. Ruboneka Mirindi Innocent, one of several local money-changers, said residents keep the defective bills to "help each other out," but that acceptance varies widely, creating tension between buyers and sellers.
Some businesses have stopped taking the damaged bills to avoid onward losses, worsening commercial decline in a city that once had a vibrant local economy. Zihalirwa Rutchababisha, who runs an equipment repair shop, said he would not accept the busted banknotes because he would be unable to use them to buy supplies, and that his weekly profit had fallen from about $120 last year to roughly $20 under M23 control.
Banks in Bukavu and other eastern cities such as Goma have remained closed since the insurgents seized territory and clashes escalated, preventing many residents from accessing cash. State employees in some rebel-held areas reportedly receive pay via electronic transfers, but those workers account for only about 2% of Bukavu’s population of more than 1.3 million; the majority work in the informal sector and are paid in cash.
Last week, Patrick Busu Bwasingwi Nshombo, the M23-appointed governor of South Kivu province, asked residents to exchange perforated banknotes at banks the rebels had opened, but he suspended the operation days later, saying bank agents were overwhelmed by the volume of notes presented.
Kinshasa’s government has said it will not deliver new banknotes or reopen banks in territory held by the M23. Government spokesman Patrick Muyaya said at a press conference that no bank could operate amid the insecurity in areas occupied by the rebels and raised questions about how financial institutions could work with an armed group facing sanctions from the U.S. Treasury.
The cash shortage follows an escalation of fighting that has worsened one of the world’s largest humanitarian crises. Millions have been displaced across the Democratic Republic of Congo, and more towns and cities in the mineral-rich east have come under rebel control.
Economists and local officials say restoring a reliable currency supply will be critical to easing daily hardships. David Kyanga, a professor of economics at Bukavu’s Higher Institute of Commerce, said the most immediate remedy would be for authorities in the M23-controlled areas to recognize the patched banknotes as valid to reduce uncertainty, but he noted that broader solutions require restored security and coordinated banking operations.
Residents and small-business owners said they have few options as long as banks remain closed and cash deliveries are blocked. Mukumiro said he felt abandoned. "We don’t know who will save us," he said, referring to both the government in Kinshasa and the rebel authorities in the city.
The situation in Bukavu illustrates how armed conflict can disrupt routine financial systems, with consequences that ripple through local markets and households already burdened by displacement and insecurity. International and national actors have so far not agreed on pathways to restore regular banking services in areas under rebel control, leaving residents to rely on improvised remedies or face declining livelihoods.