Issue 126: Wake-up Call

Hello

Last week, Ethiopia was still reeling from the effects of a glitch at the Commercial Bank of Ethiopia (CBE) that occurred the prior week.The system error allowed some customers to withdraw more money than they had in their accounts, reportedly enriching thousands.Earlier in the week, many details surrounding the glitch, which resulted in losses of around $40 million, remained unclear, and the story was gaining international attention, being picked up by major media outlets from the UK to India.On Monday, the CBE president issued a statement blaming university students for exploiting the malfunction.Later in the week, the Ethiopian Information Network Security Agency (INSA) clarified that the incident was not the result of a cyberattack.The initial deadline for those who illegally withdrew large sums to return the funds or face consequences has already passed on Saturday, March 23, 2024.CBE has vowed to take action against those who do not return the money from threatening legal proceedings to the potential disclosure of personal information, which could constitute doxing. [Read More]However, the week also brought other unfortunate news on those who do not clearly deserve it.Shega has learned that Moha Soft Drinks, the bottler for PepsiCo products in Ethiopia, has laid off around 100 employees, with 300 more facing potential job cuts at one of its manufacturing plants in Addis Ababa, following the introduction of automation machines.According to sources, the affected employees were previously responsible for manually handling bottles, from feeding them into the machine plants to loading bottles into cases.However, the newly installed bottle caser and uncaser machines now automate these processes, resulting in a reduction in the workforce. [Read More]Another development that also relates to closure has also come out of the betting industry.It has been three months since Addis Ababa's officials closed over 3,000 betting shops. At the time, officials alleged that the shops were negatively influencing the youth. Now, there appears to be an update. The Reporter has stated that the sports betting shops in Addis Ababa will not be reopened, and the Prime Minister's Office will make a decision regarding those located nationwide. [Read More]If it's all looking gloomy, don't worry, as we also have some good news to share.But before we delve into the positive developments, we're excited to share an update from our partner, GITEX Africa. This massive technology conference, following a successful debut last year, is returning to Morocco in 2024!

As a proud GITEX Africa partner, Shega is thrilled to offer our readers a 40% early-bird discount to attend.  Here's how to claim your discount:

Visit the registration page: [Register]

Select the pass(es) you need.

During checkout, apply the promo code SHEGACP40 before April 18th, 2024.

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In the startup arena, the past week introduced us to a promising newcomer, Abro.This innovative startup aims to tackle the housing shortage and rising cost of living in Addis Ababa by promoting shared living spaces.

Operating much like social media platforms, Abro allows users seeking roommates to create profiles, upload pictures, and share details of the available space they wish to rent. [Read More]Meanwhile, an Ethiopian creative agency  is also cooking something new.You see for creative agencies in Ethiopia, finding the perfect image to tell a story is a struggle.International stock photo platforms often lack the cultural nuance and local flavor needed to resonate with Ethiopian audiences.FIRMA Media and Communications is taking on the challenge with StockAmba, an Ethiopian stock platform offering localized digital assets.Launched around six months ago, StockAmba provides Ethiopian-inspired content reflecting the country’s culture, traditions, and values. [Read More]Another topic the Shega team also looked into in the pas week is the emerging trend of food delivery discounts.While popular with consumers, the inner workings of these discounts remain unknown to the public.But how do these perks work? Who bears the cost of the discounts, and what's in it for the restaurants and the platforms? [Read More]Lastly, let's shift our focus to the telecom sector. Safaricom’s M-Pesa has signed an international money transfer agreement with Onafriq, one of Africa’s largest digital payment networks.The partnership will help streamline remittance flows to Ethiopia. Onafriq currently operates in 40 African countries. [Read More]Thank you for reading and stay tuned for more updates from Shega Weekly! 

Here is what we've been reading:

Why African startups don’t always need to expand across the continentMeta paid a consulting firm to sling mud at TikTokRefund fraud schemes promoted on TikTok, Telegram are costing Amazon and other retailers billions of dollarsIf you are here because someone forwarded you this email, you can subscribe here to get future newsletters.