Ethiopia’s banking sector faced a major setback recently when the country’s largest bank, the Commercial Bank of Ethiopia, encountered a technical glitch that allowed customers to withdraw more money than was available in their accounts. The aftermath of this incident has left the bank scrambling to recover over $40 million in lost funds.
Reports surfaced indicating that long queues formed at ATMs across Ethiopia as customers attempted to take advantage of the malfunction. According to local media, university students played a significant role in spreading news of the glitch through social media channels and were among those who withdrew substantial amounts of money.
Abe Sano, CEO of the Commercial Bank of Ethiopia, confirmed the incident and stated that approximately half a million transactions were processed during the period of the glitch. While the bank has not disclosed the exact amount lost, a local newspaper estimated the figure to be around 2.4 billion Ethiopian birr, equivalent to $42 million.
Contrary to speculation of a cyberattack, Ethiopia’s central bank clarified that the problem stemmed from a routine system update and inspection. Nonetheless, the malfunction prompted a temporary shutdown of the banking system, leaving customers unable to access cash for several hours.
Established in 1963, the Commercial Bank of Ethiopia boasts a vast customer base of 40 million individuals. However, the recent technical glitch has posed a significant financial challenge for the institution. In response, the bank has initiated efforts to recover the lost funds, collaborating with law enforcement agencies to address the matter.
Interestingly, despite the unauthorized withdrawals, Abe Sano announced that the bank does not intend to pursue legal action against students who took out excess cash. This gesture may alleviate concerns among affected individuals, although questions remain regarding the bank’s ability to fully recover from the financial implications of the glitch.
As the Commercial Bank of Ethiopia navigates through this crisis, stakeholders will closely monitor its recovery efforts and assess the long-term impact on the country’s banking landscape.
