After seizing large parts of North Kivu in the eastern Democratic Republic of Congo (DRC), the M23 rebel group is now facing a far more complex challenge: governance. Though they have effectively ousted state authority in several towns, including Bunagana and parts of Rutshuru, their attempts to establish administrative control are being undermined by economic collapse, popular resentment, and international isolation.
Economic Strain and Forced Taxation
In areas under M23 control, daily life is shaped by a fragile economy that is rapidly deteriorating. To fund their governance, the rebels have instituted a forced taxation system. Traders, farmers, and miners are required to pay fees on income, goods, and services.
Local residents interviewed by Reuters and Voice of America have described arbitrary taxes ranging from 10% to 20% on commercial activity. A trader in Bunagana, who requested anonymity, said:
| “If you refuse to pay, they accuse you of supporting the government. You can be arrested or lose your shop.”
Despite these levies, public services remain minimal. Roads are unpaved, schools lack materials, and public health services are underfunded or nonexistent. Many residents accuse M23 of enriching themselves rather than investing in community welfare.
Banking Collapse and Financial Isolation
M23’s territorial expansion has effectively shut down the formal banking system in rebel-held regions. Commercial and state-run banks ceased operations, fearing risk exposure, theft, or reputational damage. Consequently, people in Rutshuru, Kiwanja, and Bunagana are unable to access savings, receive transfers, or conduct formal business.
A teacher in the occupied zone told France 24:
| “We have not been paid for four months. There are no banks, no mobile money, and we have to walk to Goma to cash anything, if we’re even allowed out.”
With Kinshasa enforcing financial blockades, the rebels have been unable to replace the formal system with reliable alternatives. Residents now rely on informal savings groups, bartering, and risky smuggling networks to survive.
Diplomatic Efforts and Economic Stakes
Meanwhile, diplomatic backchannels are active. The United States and Qatar are facilitating talks between the DRC and Rwanda, aiming to ease tensions and explore economic frameworks that could stabilize eastern Congo. Kinshasa accuses Kigali of backing M23—an allegation Rwanda continues to deny.
International actors, particularly the U.S. State Department, have expressed hope that stability might unlock foreign investment in the DRC’s mineral-rich regions. A senior U.S. diplomat familiar with the talks told Reuters:
| “This conflict zone sits on critical resources. The world wants cobalt, coltan, and tin—but not from war economies.”
However, President Félix Tshisekedi remains adamant that any investment hinges on M23’s complete withdrawal. As of now, no credible third party has stepped in to formally recognize or negotiate with the rebels.
Humanitarian Fallout Intensifies
Beyond economic paralysis, the region is buckling under a growing humanitarian crisis. According to the UNHCR and OCHA, more than 1.2 million people have been displaced since the beginning of the year, fleeing violence and insecurity. Camps around Goma and across the Rwandan and Ugandan borders are overcrowded and under-resourced.
Families returning to formerly occupied villages have found homes burned, crops looted, and community infrastructure destroyed. Farming has ground to a halt in many areas, threatening food security. Aid agencies are finding it increasingly difficult to operate, both due to logistical challenges and fears that delivering aid to M23-controlled zones could be seen as legitimizing their authority.
Doctors Without Borders reported that health centers in rebel territories are seeing a rise in malnutrition, respiratory infections, and cases of cholera. Sanitation is poor, and medicine is scarce.
As M23 attempts to hold and manage territory, their lack of administrative experience, economic infrastructure, and legitimacy continues to push eastern Congo further into crisis. For residents caught in the crossfire, the change in flags has brought little change in fortunes.
