Nairobi, April 14 -- Africa is working on a credit rating agency to be launched by the end of 2024 to address what it terms unfairness.

The proposal for the new agency, the African Credit Rating Agency (ACRA), as outlined by United Nations Economic Commission for Africa (Uneca) would provide "balanced and comprehensive opinions" on African credit instruments. This would then support affordable access to capital and the development of domestic financial markets.

Credit ratings are designed to gauge a borrower's risk of default, and factor in the terms on which banks and others will lend to them.

With the backing that comes from the support of the African Union (AU), it is envisaged that the rating agency will have the advantage of under...