Life without cash in captured DR Congo city

Life without cash in captured DR Congo city

Cash has become so scarce in Goma, the eastern Congolese city seized by anti-government fighters in January, that some parents are now paying school fees in cans of palm oil. After the city fell to the Rwanda-backed M23 group, authorities in the Democratic Republic of Congo stopped supplying cash to banks in M23-controlled areas. Banks have since closed, cash points are all but empty and residents of Goma, the capital of North Kivu province, are forced to fend for themselves for their everyday purchases. "The priority at the moment is to have something to eat," said Richard Mbueki, a teacher at the Majengo school, as he lifted a can of oil left by a parent. "We are just getting by, this situation is untenable," he said. Parents "show up at school offering food and the school asks them to present a sample", Augustin Vangisivavi, an official at the Majengo school, said. The school then "looks for which teachers are interested" in the goods. "A price is set that corresponds to the market price, then the equivalent currency is entered into the schools accounts before a receipt is issued," Vangisivavi said. It is an interim solution, but one that could drag on. Talks between the DRC and Rwanda, who have committed to work towards a draft peace agreement, have yet to have any impact on the daily lives of the Congolese living in M23-controlled areas. For now, Majengo school, as well as the citys new authorities, urge residents to use mobile payment solutions. But that mode of payment is not yet widely used in Goma, unlike in countries in east Africa. - Our survival - Money changers set rates that are out of reach for many people in one of the worlds poorest countries, prompting the M23 to announce a fixed rate in order to limit excesses. Those still lucky enough to be paid a salary cannot access their bank accounts. Mbueki the schoolteacher, like many other workers, crosses the border into Rwanda to withdraw cash, but that entails additional charges. Civil servants and people working for international organisations, who are paid by bank transfer, are also affected. The sluggish economy, the departure of some international staff and the cash shortage have also cost many locals their jobs. "Since the war, there are almost no more opportunities, so for now Im a housewife," Godel Kahamby, who was a public service employee, said. "Weve already significantly cut back on our expenditure: no new clothes, no expensive meals, no entertainment," she said. "For now, whats important is our survival." Basic necessities are still delivered to the city but the economy is clearly suffering. "We find the goods but we dont have buyers," Innocent, who sells building materials, said. The streets around Birere market are unusually quiet. Boats embarking on Lake Kivu towards neighbouring South Kivu province depart half empty. "Before the war, I could sell 20 bags of corn flour a week but currently even 10 bags a month is a blessing," Nelson Kombi, a trader in Gomas Majengo district, grumbled. Food prices have risen because of supply difficulties and new taxes imposed by the warring parties on both sides of the front line. The M23 has set up a financial authority while waiting for the banks to reopen and has called on people to put their savings into it. So far it has not been successful and experts believe the authority should be limited to centralising taxes paid to the armed group. And amid the shortage of dollars and Congolese francs, the countrys two main currencies, criminality has soared on the streets of Goma and Bukavu at night.