The publisher of Ovation International, Dele Momodu, has disclosed that he lost more than $500,000 after investing in a restaurant business in Accra, Ghana.
Momodu shared the experience while speaking on a podcast titled ‘Building Wealth with Femi’, where he reflected on the risks he faced while trying to expand his investments.
The media entrepreneur explained that the financial setback occurred when he attempted to diversify into a different industry.
“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.”
Momodu revealed that he established a restaurant known as ‘House of Ovation’ in Ghana, a project he said was launched with ambitious plans and careful preparation.
“I tried to do a restaurant business in Accra, Ghana, and I lost over half a million dollars,” he said.
The former presidential candidate noted that the restaurant was equipped with modern facilities and staffed with experienced chefs.
“It was called the House of Ovation in Ghana. Very beautiful, great ideas, good food. I employed the best chefs,” he said.
When asked about the failure of the venture, Momodu said the project encountered several unexpected difficulties.
“Everything that could go wrong went wrong,” he said.
He explained that part of the challenge involved specialised kitchen equipment he ordered from South Africa.
Momodu said he paid $60,000 to a South African company to customise industrial catering equipment for the restaurant.
“I paid $60,000 to a company in South Africa to customise my industrial catering equipment. My plates, my spoons, my forks, my knives, of course, refrigerators, everything,” he said.
According to him, the equipment arrived in Ghana in January 2007 but remained held up at the port for several years.
“In 2006 October, the goods arrived in a container in Ghana in January 2007,” he said.
“Do you know when they released it to me? I got it out in 2010.”