Pesapal, an East African payments and financial services provider, has partnered with RACK to enable businesses across East Africa to manage their sales, inventory, payments and taxes on a single point-of-sale solution.
The two firms say that, despite advances in technology, many small and medium-sized enterprises still rely on outdated tools, such as handwritten receipts, manual inventory logs, and disconnected payment systems, to transact. This has slowed their growth, increased errors, and locked them out of credit and capital opportunities.
However, the RACK POS solution aims to help end that pain with its suite of products.
“Ours is not just a partnership, it is a response to one of the most urgent problems faced by businesses in East Africa – ease of starting, running and scaling a business,” said Agosta Liko, CEO of Pesapal.
According to the International Finance Corporation (IFC), more than 80 percent of the 30 million SMEs operating across East Africa still operate informally, relying on paper records, manual inventory checks and disconnected payment systems to transact.
Most of these businesses have no digital footprint, meaning no access to financial services, no real data for decision-making and no way to scale confidently. This lack of structure does not just slow growth; it actively locks entrepreneurs out of opportunity.
Indeed, only 20–25 percent of SMEs in sub-Saharan Africa have access to formal credit due to the lack of digital records, consistent transaction data and formal registration.
“This partnership is about powering Africa’s next generation of business leaders and ensuring no entrepreneur is left behind. With the RACK POS, we are not just providing technology – we are delivering a lifeline,” posed Liko.
Within six months of using RACK POS, SMEs generate verified transaction history and digital records that will unlock access to business credit from Pesapal – transforming paper-based businesses into credit-worthy enterprises.
“This partnership brings structure, clarity, and visibility to businesses that have operated in the dark for too long. It’s not just about digitization; it’s financial inclusion in motion,” stated Liko.
The RACK POS solution is available on both web and android, allowing business owners to manage operations from anywhere. Its centralized control and reporting feature makes it ideal for growing businesses with multiple locations.
“Our cloud-enabled solution is designed to make daily business easier for SMEs, to help them do better record keeping and get a clearer picture of how their business is doing,” said Ferdinand Eloto, Co-Founder and Team Lead of RACK.
Most importantly, having digital records will make it possible for SMEs to access credit and funding – something that has been out of reach for these businesses for a long time.
“Our partnership with Pesapal is a significant milestone because it turns everyday business tools into a pathway for financial inclusion, scale, and sustainability across East Africa’s SME ecosystem,” said Eloto.
