Regular time ended with Zamalek winning 2-1, reversing their identical score defeat last week in Hawassa.
Ahmed Madbouly scored from the spot just before the break, and completed his personal brace four minutes into the second half, only for Abdulsamad Ali Usman to score a vital away goal for the visitors after 52 minutes.
In the shootout, Madbouly, Bassem Morsy and Mohamed Ibrahim scored for Zamalek with Ayman Hefny’s kick hitting the post, and Dicha’s goalkeeper Wondwosen Geremew Babsa saving Mahmoud Abdel Aziz final kick, while Arafat Djako, Temesgen Duba Holeta, Abdulsamad and Teklu Tafese Kumma scoring for the Ethiopian visitors.
It was the first time for an Ethiopian side to knock Zamalek from a Caf competition, as the White Knights poor recent continental record continued.
Zamalek have not tasted continental glory since 15 years when they won the 2003 CAF Super Cup.
Weekend results:
Supersport (South Africa) 2 Atletico (Angola) 1 (0-0)
Ahly Shendi (Sudan) 2 CS la Mancha (Congo) 1 (0-3)
APR (Rwanda) 2 Djoliba (Mali) 1 (0-1)
Hilal Obied (Sudan) 6 Olympic (Burundi) 0 (0-0)
Nkana (Zambia) 1 CR Belouizdad (Algeria) 0 (0-3)
El Masry (Egypt) 0 Simba (Tanzania) 0 (2-2)
Club Africain (Tunisia) 0 RS Berkane (Morocco) 1 (1-3)
Nouadhibou (Mauritania) 2 Raja Athletic Club (Morocco) 4 (1-1)
Cape Town City (South Africa) 1 Costa do Sol (Mozambique) 2 (1-0)
Enyimba (Nigeria) 3 Energie(Benin) 2 (2-0)
Fosa Juniors (Madagascar) 1 Port Louis (Mauritius) 0 (2-0)
USM Alger (Algeria) 1 AS Maniema (DR Congo) 1 (2-2)
Deportivo Niefang (Equatorial Guinea) 1 Motema Pembe 0 (DR Congo) (1-1)
Akwa United (Nigeria) 1(3-2pen) Al Ittihad (Libya) 1 (0-1)
Ben Guerdane (Tunisia) 3 CARA (Congo) 1 (0-3)
Zamalek (Egypt) 2 (3-4pen) Wolaitta Dicha 1 (Ethiopia) (1-2)
List of winners from Confederation Cup last-16 round: SuperSport United (South Africa), CR Belouizdad (Algeria), USM Alger (Algeria), CARA (Congo), CS La Mancha (Congo), El Masry (Egypt), Deportivo Niefang (Equatorial Guinea), Wollaita Dicha (Ethiopia), Djoliba (Mali), Fosa Juniors (Madagascar), Raja Casablanca (Morocco), RS Berkane (Morocco), Costa do Sol (Mozambique), Enyimba (Nigeria), Akwa Utd (Nigeria), Hilal El Obied (Sudan).
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