Ovation magazine publisher Dele Momodu has disclosed that he lost more than $500,000 when he ventured into the restaurant business in Ghana.
Momodu made the revelation during an appearance on the podcast Building Wealth with Femi, sharing the financial setback he experienced while attempting to diversify his investments.
“The time I lost money was when I tried to diversify,” Momodu 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 the restaurant, called House of Ovation in Accra, Ghana, featured innovative ideas, quality food, and top-tier chefs.
“Very beautiful, great ideas, good food. I employed the best chefs,” Momodu added.
Discussing what went wrong, he said, “Everything that could go wrong went wrong,” citing issues with imported kitchen equipment ordered from South Africa.
Momodu disclosed that he paid $60,000 to a South African company to customise industrial catering equipment, including plates, cutlery, and refrigerators.
“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,” he said, explaining that the equipment remained stuck at the port for years.
The experience serves as a cautionary tale about the risks of diversification and international business ventures, highlighting the challenges entrepreneurs can face with logistics and regulatory delays.
