How a $25,000 loan helped start Fidelity Bank

Edward Effah, founder of Fidelity Bank, has revealed that he borrowed about $25,000 from a friend and used his personal car as collateral to raise his share of the funds needed to establish the bank. In an interview on Channel One TV on Monday, November 9, 2026, Effah said he was 33 years old when he began working on the business plan in 1995. He had returned to Ghana from the United Kingdom with about £40,000 in savings. However, a significant portion of the money went into registering the company, developing the business plan and paying consultants. Effah, a chartered accountant who trained in London, said his desire to build a business in Ghana influenced his decision to return home. No new borrowing for New Economy Programme - Ato Forson He was also motivated by seeing Ghanaian professionals in the UK lose their jobs during economic downturns. Together with his friend, Harper Randawa, he established a small investment banking firm and a discount house, which helped banks buy and sell short-term investments. The founders initially envisioned building an investment firm similar to Goldman Sachs. However, the emergence of online trading changed the banking industry, allowing banks to trade directly with one another and reducing the need for intermediary firms such as theirs. Effah said the development forced the founders to reconsider their business model and venture into commercial banking. Reflecting on the challenges of the early years, he said one of his biggest concerns was failing the people who had entrusted their money to the business. “In the early days, you want to make sure you survive, and you don’t fail, because failure has all kinds of consequences,” he said. Ghana’s airports must be safe and globally competitive - Vice President According to Effah, the discount house recorded a profit and paid dividends to its shareholders in its first year of operation, a trend that continued in subsequent years. DR/MA BoG Governor Gives Ghanaians Christmas Cedi Assurance | What He Promised Source: www.ghanaweb.com
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