Mega African Capital Limited, one of Ghana’s prominent investment firms, has reported a widening net loss of GH¢33.7 million for the 2024 financial year, marking its third consecutive year in the red, despite a notable 26% growth in total assets.
According to its audited financial statements released this week, the Accra-based firm’s revenue fell sharply to GH¢320,080—representing a 31% decline compared to the previous year.
At the same time, the company’s operating expenses surged, with staff costs nearly doubling to GH¢539,875, and professional fees exceeding GH¢681,000.
The most significant drag on performance remained finance costs, which stood at GH¢32.8 million, driven primarily by interest payments.
The retained earnings deficit also grew, reaching GH¢51.7 million by the end of the year.
Despite the negative operating environment, the company avoided impairment charges on its GH¢193.5 million commercial paper holdings.
The company’s balance sheet, however, painted a more optimistic picture.
Unrealised gains of GH¢69.7 million from equity investments, coupled with a GH¢34.5 million investment property portfolio, contributed to the firm’s overall asset growth to GH¢339.2 million. Much of this expansion was backed by rising client deposits, which climbed to GH¢225 million.
In a joint statement, Board Chair Christine Dowuona-Hammond and CEO Kwesi Amonoo-Neizer assured stakeholders that the firm retains “adequate resources” to continue operations.
Their confidence was bolstered by auditors IAKO CONSULT, who affirmed the company’s status as a going concern.
Still, the company opted to withhold dividends for a third consecutive year, reflecting ongoing financial pressure.
Market experts warned that the firm’s reliance on unrealised market gains could pose long-term risks.
“When paper gains mask operational losses, it signals reliance on market volatility rather than sustainable income,” said Accra-based investment advisor Franklin Tetteh.
“The 94% revenue decline since 2021 demands strategic recalibration.”
Mega African Capital’s portfolio includes a mix of real estate, equities, and fixed-income assets across Ghana. The company is governed by a four-member board with independent oversight and maintains internal control mechanisms to manage operational risk.
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