Bukavu: Residents of Bukavu, a city in eastern Democratic Republic of Congo currently under the control of the M23 rebel group, are facing a severe cash shortage, forcing them to use damaged, hole-punched banknotes in everyday transactions.

Since the Rwanda-backed M23 captured Bukavu in February, local banks have remained closed, and the Congolese government has refused to support banking operations in rebel-held areas. This has left most residents, especially those working in the informal sector, without access to viable currency.

The perforated banknotes, originally intended for destruction by the banking system, have resurfaced on the black market, reportedly stolen during the rebel takeover. While some government employees still receive online payments, the majority of the population struggles to meet basic needs, including buying food.

Residents report confusion and tension in marketplaces as businesses debate whether to accept the damaged bills. Alain Mukumiro, a local resident, said his family faces another night without sufficient food because his money, despite being legitimate, is rejected in transactions.

Economic experts suggest that formally recognizing the damaged banknotes as valid could help stabilize local trade. David Kyanga, a professor of economics at Bukavu’s Higher Institute of Commerce, said that issuing clear guidance on accepting these notes could ease tensions and restore some economic activity.

Meanwhile, the M23 has imposed heavy taxes on residents and businesses, including a 15% levy on coltan mining and up to 20% on small traders. Aid agencies and companies operating in the region face difficult choices due to international sanctions, complicating the delivery of humanitarian assistance.

Until a resolution is reached, the people of Bukavu remain trapped in an economic and humanitarian crisis, with cash scarcity and damaged currency adding to the challenges of life under rebel control.