The Managing Director of Ecobank Development Corporation( EDC )Investments Ltd, Paul Kofi Mante, says building wealth becomes easier once individuals grow their initial capital base, stressing that moving from GH₵100,000 to GH₵1 million is far less difficult than starting from zero.
Speaking on JoyFM’s Super Morning Show on February 11, Mr Mante explained that the principle of compounding favours those who are able to build substantial capital over time.
“In fact, it’s easier to move from 100,000 to 1 million than from zero to 100,000,” he said. “If you use 20% as interest, if you have GH₵1,000 and you get 20% on it, you get GH₵200. But if you have GH₵100,000, you get GH₵20,000. If you have GH₵500,000 and you get 20% on the GH₵500,000, you get an additional GH₵100,000.”
According to him, the key lesson is that the bigger the investment base, the faster the growth. “The bigger the base, the faster the journey becomes, the quicker you get to your destination,” he noted.
His comments come amid growing public interest in long-term investing and financial security, as many Ghanaians look beyond salaries to build sustainable income.
Mr Mante cited the example of a teacher who began investing modestly but saw significant progress in 2020 during the Covid-19 pandemic. With schools shut down, the teacher organised online classes to earn extra income and later expanded into catfish farming and pottery.
“It’s gone beyond just the salary and he’s looking at other things,” Mr Mante said, highlighting the importance of multiple streams of income.
He disclosed that as of the end of last year, the teacher was earning about GH₵75,000 monthly purely from interest on investments.
Using an 18% annual return compounded quarterly, Mr Mante demonstrated how small, consistent contributions can grow significantly over time. He said investing GH₵150 a month could yield about GH₵1.1 million in 27 years, while GH₵600 monthly could cross the million-cedi mark in 19 years. Higher monthly investments would shorten the timeline even further.
“You build up little by little. It won’t happen overnight. But you will get there,” he assured listeners.
He also cautioned investors to consider inflation when calculating returns. Explaining the difference between nominal and real returns, he said if inflation stands at 4% and an investment yields 10%, the real return is 6%.
“The way to catch up with the time value of money is to make sure that you are getting returns ahead of inflation,” he said. While inflation cannot be controlled, he urged individuals to focus on what they can manage disciplined saving and smart investing.
“You cannot control inflation which eats away the value of money. What you can control is your own savings and investment and taking advantage of the power of compounding,” he advised.
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