Veteran journalist, politician, and publisher of Dele Momodu has revealed how a bold attempt to diversify his investments led to a financial setback of more than $500,000 after a restaurant venture in Accra, Ghana, collapsed.
Momodu, a prominent member of the African Democratic Congress (ADC), shared the story during an appearance on the podcast Building Wealth with Femi. During the discussion, he reflected on the risks involved in expanding into unfamiliar industries and explained how his attempt to venture into the hospitality sector ended in significant losses.
According to the Ovation Magazine publisher, the restaurant project—named House of Ovation—was established in Accra with the intention of creating a high-end dining experience. The concept was designed to reflect the luxury and global reputation associated with his media brand. Momodu noted that the restaurant was carefully planned, equipped with modern facilities, and staffed with experienced chefs capable of delivering top-quality cuisine.
He explained that the decision to invest in the restaurant business was part of a broader strategy to diversify his income streams. However, he cautioned that diversification does not automatically guarantee financial success.
Momodu said many investors wrongly assume that spreading their money across different ventures will always yield greater profits. In reality, he stressed, diversification can also expose investors to new risks, particularly when they enter industries where they lack sufficient experience.
Recalling the ordeal, Momodu said the project encountered a series of unexpected challenges that gradually crippled the business.
“One of the times I lost a significant amount of money was when I tried to diversify,” he said. “People often believe diversification guarantees more income, but that’s not always true. Unless you are very fortunate, you could end up losing everything.”
A major setback came from the logistics and importation of specialised equipment required for the restaurant. Momodu disclosed that he paid about $60,000 to a South African company to manufacture and customise industrial catering equipment for the establishment. The shipment included essential items such as refrigerators, plates, spoons, forks, knives, and other kitchen equipment needed to operate a modern restaurant.
Despite the careful planning, the container carrying the equipment ran into bureaucratic and logistical hurdles after arriving in Ghana. The goods, which were shipped in October 2006 and reached the Ghanaian port in January 2007, became stuck at the port due to prolonged clearance delays.
Momodu explained that the situation created severe operational problems for the business. Without access to the imported equipment, the restaurant struggled to function as intended.
In a frustrating turn of events, the container remained trapped at the port for several years before it was eventually released in 2010—far too late to salvage the project.
“Everything that could go wrong went wrong,” Momodu said while reflecting on the experience.
The media entrepreneur noted that the prolonged delay and other operational challenges ultimately contributed to the failure of the restaurant venture, resulting in the loss of over half a million dollars.
Despite the painful financial setback, Momodu said the experience taught him valuable lessons about investment risks, the importance of industry knowledge, and the unpredictable challenges that can arise when doing business across borders.
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