Publisher of Ovation magazine, Dele Momodu, has opened up about losing more than $500,000 in a failed restaurant investment in Ghana.
Momodu made the disclosure during an appearance on the ‘Building Wealth with Femi’ podcast, where he reflected on the risks associated with diversifying one’s business interests.
According to him, the financial setback occurred when he ventured outside his core media enterprise in an effort to expand his portfolio.
He explained that he established a restaurant known as “House of Ovation” in Accra, describing it as a well-conceptualised venture with quality cuisine and experienced chefs.
However, despite the planning and investment, the project encountered significant operational challenges.
“The time I lost money was when I tried to diversify,” he said, noting that diversification does not automatically guarantee profit and can sometimes result in substantial losses.
Momodu attributed part of the failure to logistical complications involving imported equipment. He disclosed that he paid $60,000 to a South African company to customise industrial catering tools and kitchen fittings, including refrigerators and dining ware.
According to him, although the shipment arrived in Ghana in January 2007, it remained stuck at the port for several years. He said the equipment was not released until 2010, creating delays that severely disrupted the restaurant’s operations.
Reflecting on the experience, Momodu said multiple setbacks combined to derail the business. He used the episode to caution entrepreneurs about the complexities of expanding into unfamiliar sectors without fully accounting for regulatory and operational risks.
