In a bold move to transform how small businesses operate across East Africa, Pesapal and RACK announced their partnership on Wednesday.
The partnership aims to digitise sales, inventory, payments, and tax management for SMEs in Kenya, Uganda, and Tanzania.
This collaboration introduces a fully integrated Point of Sale (POS) solution to replace outdated manual systems with a seamless digital platform.
Digitising business operations with RACK POS
The new RACK POS system offers a cloud-based, all-in-one platform accessible via the web and Android, enabling business owners to manage daily operations from anywhere.
It covers everything from payment processing and inventory tracking to petty cash management and performance monitoring.
Ferdinand Eloto, Co-Founder of RACK, explains, “Our cloud-enabled solution is built to help businesses keep better records and understand how they’re doing day to day”.
This shift from handwritten receipts and manual logs to digital records is expected to bring clarity and structure to many SMEs that have traditionally operated informally.
According to the International Finance Corporation (IFC), over 80% of the 30 million SMEs in East Africa still rely on paper-based systems, which slow growth and limit access to credit.
Unlocking credit and financial Inclusion for SMEs
Pesapal CEO Agosta Liko emphasised that the partnership goes beyond digitisation: “It’s financial inclusion in motion.” By generating verified transaction histories within six months of using RACK POS, SMEs can build credible digital records that unlock access to business credit, including loans from Pesapal.
Liko added, “This partnership brings structure, clarity, and visibility to businesses that have operated in the dark for too long.”
The digital transformation aims to remove barriers that have long hindered small businesses from scaling and accessing capital, thereby giving them a fighting chance in a competitive market.
This integrated solution also enhances security and transparency. PesapalPesapal’s POS system supports multiple payment methods, such as mobile money, debit, and credit cards, while providing detailed transaction records and real-time updates.
This improves customer experience and helps businesses optimise cash flow and prevent fraud.
The rollout of RACK POS is already underway, with optimism from both companies that this digital tool will significantly improve the day-to-day operations and growth potential of SMEs across East Africa.