Publisher of Ovation Magazine, Dele Momodu, has disclosed that he lost over $500,000 while attempting to diversify his investments with a restaurant business in Ghana.
Momodu made the revelation during an appearance on the ‘Building Wealth with Femi’ podcast, where he spoke about the risks associated with diversification.
“The time I lost money was when I tried to diversify,” he said.
“People always think that diversification means you will make more money. No, unless you are very lucky, you can lose all your money while trying that.”
He explained that he established a restaurant in Accra called House of Ovation, describing it as a high-end venture with quality service and top chefs.
“It was called the House of Ovation in Ghana. Very beautiful, great ideas, good food. I employed the best chefs,” he stated.
According to Momodu, multiple setbacks contributed to the business failure.
“Everything that could go wrong went wrong,” he said.
Part of the challenge involved industrial kitchen equipment he ordered from South Africa. He disclosed that he paid $60,000 to a South African company to customise catering equipment, including plates, cutlery, refrigerators and other items.
However, the shipment reportedly became stuck at the port after arriving in Ghana in January 2007.
“In 2006 October, the goods arrived in a container in Ghana in January 2007. Do you know when they released it to me? I got it out in 2010,” Momodu revealed.
The media entrepreneur said the prolonged delay significantly affected the viability of the business, ultimately leading to substantial financial losses.
