Ethiopia’s financial sector was thrown into chaos as the country’s largest bank, the Commercial Bank of Ethiopia, grappled with the fallout of a major technical glitch that allowed customers to withdraw millions of dollars more than they had in their accounts.
Reports emerged of long queues forming at cash machines across Ethiopia after the glitch was discovered, with customers taking advantage of the unexpected windfall. According to local media, university students were among those who withdrew substantial sums of money after news of the glitch spread rapidly on social media platforms.
The CEO of the Commercial Bank of Ethiopia, Abe Sano, confirmed the extent of the situation, stating that the bank is attempting to recover over $40 million lost during the incident. While the exact amount withdrawn has not been disclosed, Abe revealed that approximately half a million transactions occurred during the glitch, resulting in a staggering loss of 2.4 billion Ethiopian birr.
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Contrary to initial speculation of a cyberattack, Ethiopia’s central bank clarified that the technical malfunction was caused by a routine system update and inspection. Nevertheless, the repercussions were severe, leading to the temporary shutdown of Ethiopia’s banking system as authorities scrambled to rectify the issue.
The Commercial Bank of Ethiopia, founded in 1963 and boasting 40 million customers, now faces the daunting task of recouping the lost funds. Abe Sano assured the public that the bank is actively collaborating with law enforcement agencies to recover the missing money. In a surprising move, the bank also announced that it would not pursue legal action against individuals, particularly students, who withdrew funds erroneously.
Despite repeated attempts, a spokesperson for the bank remained unavailable for comment, leaving many questions unanswered regarding the full extent of the glitch and its implications for Ethiopia’s financial stability.
As investigations into the incident continue, Ethiopians await further updates on the resolution of this unprecedented banking crisis, highlighting the vulnerability of even the most robust financial institutions to technical failures and the challenges posed by the digital age.
