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 which project owners use as a tool to analyze the profitability of investment, worth to pursue such project as well as to strike a comparative value to either invest in such a project or alternative. 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 is, beyond the threshold of the minimal uncertainty environment, the appraisal experts turn to assume such project is toxic due to lack of advanced techniques to assess the profitability of such project in a very high uncertain environment.

It is economically agreed that in most developing and underdeveloped economies has a very high uncertain environment condition, which logically implies most of the project within these environment suffers to be categorized as a toxic project worth not an investment support. The worst of it is the Commercial Bank investment to the Small and medium scale enterprises which forms the chunk of the business operations of such fragile economies, making such logic conclusions very outrageous.

The focus of this article is to empathize with the SMEs community in Ghana and related investment attraction initiatives, which requires experts to acquaint themselves with advanced appraisal techniques for high uncertain environmental conditions, which such business and their related projects operate within. 

Without a good Investment appraisal report to establish the profitable reality of business or projects, investors and commercial Banks are very reluctant to commit funds despite the quality of central ideas and real impact of the project to the benefit of the community the project is situated.

Therefore my office will always be available to any micro, small and medium scale enterprises striving for investment support which require a quality appraisal report for funding and struggling to get because of the high cost to attain such document. I do urge you to contact my office for help because we have the required actuary model to produce a document that has a high sensitivity test to reality on the ground to guide a clever investment decision making.

This project is carried out in a union spirit with my friend Pablo Fermandez of IESE Business School, Madrid, Spain. Professor of Finance. In reference to his paper copied to me in November 2018. On appraisal techniques badly explained by Finance Professors.

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 to acquire quality appraisal investment documentation for easy accessibility to funding.


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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