Crisis in Sesame: Cash Shortage and Alternative Payments

In the city of Sesame, located in East Congo, cash is running critically low. Some parents are resorting to paying school tuition with cans of palm oil after the city was taken over by anti-government fighters in January.

Following the capture by the Rwandan-backed M23 group, cash supplies to banks in this region halted. The bank is now closed, and ATMs are left empty, forcing residents in Goma, the capital of North Kivu, to navigate alternative means for daily purchases.

Richard Mbueki, a teacher at Magengo School, expressed the urgency of the situation, saying, “The priority at the moment is to eat something.” He described finding a can of oil left behind by his parents.

Augustin Vangisivavi, another staff member at Majengo School, noted that parents are now arriving at schools that provide food, often having to show their samples. The school then assesses whether teachers are willing to accept the goods as payment.

Vangisivavi explained, “Before issuing receipts, we set a price matching market rates and then it goes into the school account.” While this arrangement is a temporary fix, it’s not without complications.

Consultations between the Democratic Republic of Congo (DRC) and Rwanda about a potential peace agreement have yet to yield improvements for those living under M23 control.

For now, Majengo School and local officials are encouraging the use of mobile payment options. However, those methods aren’t widely accepted in Goma, unlike in other East African nations.

Survival Mode

Currency exchange rates are sky-high, making transactions unaffordable for many in one of the world’s poorest nations. There’s pressure on exchange operators to announce fixed rates to control the inflation exacerbated by M23.

Even those who manage to get paid often can’t access their bank accounts. Mbueki mentioned that like many others, he withdraws cash at the border with Rwanda, incurring extra fees in the process.

Civil servants and international organization employees processing bank transfers find themselves affected as well. The struggling economy, along with job losses tied to the conflict, has left many in dire straits.

“I’m a housewife now because I haven’t found work since the war began,” shared Godel Kahamby, a public service employee. “We’ve drastically cut our expenses; no new clothes, no fancy meals, or entertainment,” she added. “Right now, it’s about survival.”

While basic supplies are still arriving in the city, the economy is clearly faltering. Innocent, a building materials seller, remarked, “We find products, but there are no buyers.” The streets around the Birere Market have quieted significantly.

Nelson Dubby, a trader in Goma’s Magengo area, said, “Before the war, I could sell 20 bags of corn flour a week, but now even selling 10 bags a month feels like a blessing.” Food prices have surged due to supply issues and new taxation introduced by the fighting factions on both sides.

M23 has set up its own financial authorities while awaiting the banks to reopen, urging residents to secure their savings. Unfortunately, this initiative has so far proven ineffective, and experts caution that current tax concentrations heavily benefit armed groups.

The scarcity of the country’s main currencies, the dollar and the Congolese franc, has led to a spike in nighttime crime in Goma and Bukavu.