A new banking system could soon emerge in Goma as the M23 leadership considers severing ties with the Kinshasa-based Central Bank. A high-ranking M23 official, who requested anonymity, confirmed that the group is exploring ways to restructure the local banking system and establish financial independence, potentially through a revised SWIFT system. However, the official did not elaborate on how this would be implemented, even as the cash shortage continues to grip the city.
For weeks, banks in Goma have remained unable to serve their clients after the Central Bank in Kinshasa blocked their operations. This has triggered a severe cash crisis in a city of approximately two million people.
The lack of access to banking services has forced residents to seek alternative means of conducting transactions. Some bank agents have resorted to withdrawing cash from clients’ accounts using point-of-sale (POS) machines but at exorbitant fees. For those with dollar accounts, withdrawals are only available in Congolese francs—and at heavily inflated exchange rates.
Mobile money transactions have also become more expensive, with both withdrawal and deposit fees rising sharply. Meanwhile, cash in circulation mostly consists of small-dollar denominations, making large transactions increasingly difficult.
The demand for the Congolese franc has soared, leading money lenders and forex bureau operators to impose their own exchange rates. For instance, 1,000 Rwandan francs (RWF) now exchange for between 1,000 and 1,300 Congolese francs (CDF), depending on negotiations. Previously, the official exchange rate stood at 1 RWF for 1.91397 CDF.
The economic strain is hitting government employees hard. “We will not receive our February salaries. I don’t know how I will manage rent and other family expenses,” says Mupenzi Gilbert, a former Goma city official under the Tshisekedi administration.
Despite the financial hardships, life in Goma is slow but calm. The city remains peaceful, though many residents are struggling to make ends meet. Prices for goods and services have soared, making everyday expenses a challenge.
High-end restaurants and hotels have become unaffordable for most people. A simple cup of coffee now costs $5, while a bottle of water goes for $3. Those who had stored cash at home have an advantage, but their reserves are depleting quickly.
Meanwhile, small-scale traders dealing in maize flour, beans, cooking oil, textiles, phone accessories, and plastic household items are finding ways to cross into Rwanda to sell their goods. Long queues at the border are becoming a common sight, with women and young men carrying merchandise.
The financial crisis has reshaped daily life, forcing even the city’s middle class to adjust to new realities. Previously bustling shopping centers and upscale boutiques are seeing fewer customers, while local markets are thriving as people seek cheaper alternatives. Many businesses, particularly those reliant on imported goods, are struggling to restock due to limited access to foreign currency. With cash becoming increasingly scarce, bartering has resurfaced in some areas, with traders exchanging goods and services instead of relying solely on money.
On Goma’s streets, the economic downturn is evident. Luxury cars have all but disappeared, as their owners have driven them to Rwanda or other East African countries due to ongoing uncertainty over the security situation. Even those who remain in Goma are opting for motorbikes or walking instead of using cars, as fuel prices have risen significantly.