Undertaken Investment appraisal in complex uncertain conditions

Photo Credit To Emmanuel Tweneboah Senzu, Investment Banker and Economist

Investment appraisal has always been the reliable means by which project owners use it as a tool to analyse the profitability of investment, worth in pursuing, as well as striking a comparative value among projects to invest, in other to obtain an alternative optimum investment outcome. Most investment appraisal techniques rely on methods that address issues in mostly very certain conditions, and if not, presume the level of uncertainty is minimal. However, the challenge here is, beyond the threshold of the minimal uncertainty environment; the appraisal experts turn to assume, such a project is toxic due to lack of advanced techniques to assess the profitability of such a project in a very high uncertain environment.

It is economically accepted fact that most developing and underdeveloped economies have a very high uncertain environmental condition towards investment promotion, which logically implies most of the project within these environments suffers to be categorized as a toxic project worth not an investment support. The worst of it is the domestic Commercial Banks investment initiative effort to the Small and medium scale enterprises, which forms the chunk of the business operations of such fragile economies, similiarly upholding toxicity theory, implies that the SMEs sector will never qualify for any credits, which makes such conclusions outrageous for fragile economies.

It thereby suggests, without a good investment appraisal report to establish the profitability reality of a business or projects, investors and commercial Banks are very reluctant to commit funds or extend credit, despite the quality of central ideas and real significant impact of the project to the community, where it may be located.

Therefore, my office will always be available to any micro, small and medium scale enterprises striving for investment support, which does require a quality appraisal report for funding, and struggling to acquire such documentation because of the high cost in attaining valid documents.

Private sector investment growth, especially in the arena of micro, small and medium scale enterprises in Ghana and possibly within the ECOWAS region has largely been my priority to assist in other to acquire appraisal investment documentation for easy accessibility to funding.

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Emmanuel Tweneboah Senzu, Ph.D.

Dean of Research, University College of Management Studies, Ghana.

Director of Research, Frederic Bastiat Institute

Tsenzu@ucoms.edu.gh | Tsenzu706@gmail.com

+233 (0)508.383.274 | +233(0)302.905.369

Post source : Frederic Bastiat Institute Library

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