Dele Momodu lost money when he ventured into the restaurant business in Ghana, revealing a story of ambition, missteps, and unexpected obstacles that cost him over $500,000. The Ovation magazine publisher shared the experience on the ‘Building Wealth with Femi’ podcast, framing it as a cautionary tale about diversification and the hidden risks of investing in new sectors.
Momodu explained that the loss came from an effort to broaden his investment portfolio. “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 said. His foray into the restaurant business, a project called the House of Ovation in Accra, began with strong ideas, appealing décor, and skilled chefs, but ultimately failed to deliver.
Reflecting on the project, Momodu admitted, “Everything that could go wrong went wrong.” Central to the problems was imported kitchen equipment from South Africa. He invested $60,000 to have industrial catering equipment customized for the restaurant, including refrigerators, cutlery, and other essential tools.
The plan quickly ran into logistical nightmares. The equipment arrived in Ghana in January 2007 but remained stuck at the port for years. “Do you know when they released it to me? I got it out in 2010,” Momodu recalled. The delay crippled operations and drained capital, turning a promising venture into a costly lesson.
This experience left Momodu with a stark perspective on the limits of diversification and the unpredictable challenges of business expansion, particularly in markets where supply chains and bureaucracy can derail even carefully planned ventures. The House of Ovation remains a reminder that vision and effort are not always enough when external factors intervene.
