In recent years, the narrative surrounding the valuation profession has shifted. Some have gone so far as to ask if it is a dying field, particularly with the rise of new technologies that promise to streamline and even replace traditional valuation methods. In African markets, where both economic and technological developments are happening at a rapid pace, this question becomes even more relevant. Is the role of the valuer becoming redundant, or is it evolving to meet the demands of a changing world?
At its core, valuation has long been essential to Africa’s real estate, finance, and business sectors. Whether assessing the market value of land, buildings, or entire companies, valuers provide the data-driven insight necessary for informed decision-making. In a continent marked by diverse and often volatile market conditions, these insights have never been more valuable. However, as new technologies like Artificial Intelligence (AI) and Automated Valuation Models (AVMs) gain prominence, many wonder if technology will ultimately displace the human valuer.
On the surface, AVMs and AI algorithms appear to be more efficient, offering faster, cheaper, and sometimes more accessible alternatives to human-led valuation. These technologies can analyze large sets of historical data in mere seconds, providing instant market estimates. Particularly in urban centers like Nairobi, Lagos, Johannesburg, and Accra, where property markets are booming, the appeal of AVMs is understandable. In regions with high volumes of transactions and increased demand for speed, technology can provide much-needed efficiency.
But there’s a flip side to this. While AVMs can crunch numbers and process data, they lack the nuanced understanding of local markets, cultural factors, and regional economic shifts that a human valuer brings. Valuation in Africa, especially in countries with less-developed data ecosystems, requires more than raw data processing. There are informal economies to consider, inconsistencies in property registration, and rapid shifts in market conditions that demand a context-sensitive approach—something that even the most sophisticated algorithms struggle to replicate.
Take, for instance, the diverse real estate landscape across the continent. The value of a property in Nairobi’s leafy suburbs or a commercial building in Johannesburg’s bustling downtown may be influenced by factors that AVMs can’t fully capture, like neighborhood dynamics, local governance, and infrastructure development plans that haven’t yet been reflected in the data. In addition, valuers often have to deal with unique challenges, such as land disputes and informal land tenure systems, where ownership and rights may not be clearly documented. These are situations that require not only technical skill but also interpersonal expertise, a quality no machine can replicate.
Africa’s emerging markets also present opportunities that underscore the importance of professional valuers. While AI and AVMs may be gaining traction in more mature markets, Africa is still in the process of formalizing many of its financial and real estate sectors. As a result, the demand for well-qualified valuers is rising, driven by increasing investments in infrastructure, real estate, and new businesses. Countries such as Kenya, Ghana, Nigeria, and South Africa are seeing substantial foreign direct investment (FDI), much of it contingent on reliable, professional asset valuations. Investors need assurances that their investments are underpinned by credible assessments of value, and this is where human expertise remains critical.
Moreover, valuation in Africa extends beyond real estate. The valuation of businesses, natural resources, and even digital assets is gaining importance. These require specialized knowledge that combines local market dynamics with broader global trends. In particular, the rise of tech hubs across the continent—such as Silicon Savannah in Kenya and Nigeria’s burgeoning fintech sector—points to a growing need for valuers who can accurately assess the worth of intangible assets like intellectual property, patents, and brand equity. AI tools can assist with the technical aspects, but the human valuer’s ability to interpret the context will remain indispensable.
Regulatory frameworks also play a significant role in preserving the relevance of valuation professionals. In many African countries, governments and financial institutions are pushing for greater accountability and transparency, particularly in sectors like real estate, banking, and insurance. Accurate and professional valuation is a key element of this drive. While AVMs can contribute to this effort by offering quick assessments, they are not without their flaws. A poorly calibrated algorithm could lead to significant discrepancies in value, raising the risk of financial instability or legal disputes. The human valuer provides the necessary checks and balances, using their experience to verify whether an automated result holds up to scrutiny.
Furthermore, valuers in Africa are increasingly expanding their roles to include advisory services. With the rise of sustainable investing and the push towards green buildings, valuers are being called upon to offer insights that go beyond the immediate market value of a property. For instance, a building’s energy efficiency or its potential for sustainable development might be overlooked by AVMs, but not by a seasoned valuer with knowledge of future trends and regulatory incentives. This advisory role is particularly relevant as African governments, such as South Africa’s, are implementing ambitious climate and energy policies that could radically reshape property markets in the years to come.
Ultimately, the question of whether valuation is a dying profession is based on a misunderstanding of its true nature. Rather than being made obsolete by technology, the profession is evolving. Valuers in Africa are not only adapting to new tools but also enhancing their value propositions by offering deeper insights, context-driven analysis, and advisory services that technology simply cannot replace. Those who embrace these changes, combining the precision of AI with the irreplaceable human touch, will thrive in this new era.