We partnered with RACK to roll out a fully integrated all-in-one solution that will enable millions of businesses across Kenya, Uganda, and Tanzania to start selling right out of the box. Businesses will be able to manage their sales, inventory, payments, and tax compliance all from one single point-of-sale.
This 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. Most SMEs still rely on outdated tools such as handwritten receipts, manual inventory logs, and disconnected payment systems. This slows growth, increases errors, and locks entrepreneurs out of credit and capital opportunities.
Leveraging on the strength of Pesapal’s payments and financial services solutions and RACK’s tailor-made software for businesses, the full spectrum of business operations - from payments and inventory to petty cash and performance tracking, this partnership is aimed at ensuring Businesses, no matter their size or industry, will have everything they need to run their operations in one affordable, plug-and-play solution.
The Big Problem It Solves
There are over 30 million SMEs across East Africa, and the majority still operate informally relying on paper records, manual inventory checks, and disconnected payment systems, 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. According to the International Finance Corporation (IFC), only 20–25% of SMEs in sub-Saharan Africa have access to formal credit due to the lack of digital records, consistent transaction data, and formal registration (IFC SME Finance Forum, 2023).
“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. For the first time, business owners can access a unified platform that digitizes their operations, builds their credit profiles, and unlocks access to financial services and growth capital,” said Agosta Liko, CEO of Pesapal.
Within 6 months of using RACK POS software, 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,” added Liko. “It’s not just about digitization; it’s financial inclusion in motion.”
Why It is a Game Changer
With the RACK POS businesses gain:
Built for Growth for Every Type of Business.
Designed for African SMEs, RACK is purpose-built for the realities of local business from mobile-first workflows and offline functionality to low hardware dependency and tax compliance integration.
“Our cloud-enabled Point of Sale solution is designed to make daily business easier for SMEs. By bringing together payments, inventory management, compliance, and performance tracking in one simple system, we are helping business owners move away from manual paperwork and disconnected tools. This means fewer errors, better record keeping, and a clearer picture of how your business is doing.,” said Ferdinand Eloto, Co-Founder and Team Lead of RACK
“Most importantly, having digital records makes it possible for SMEs to access credit and funding - something that has been out of reach for many. Through this partnership, we are giving businesses practical tools that support growth, financial inclusion, and long-term stability across East Africa. 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.”
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About Pesapal
Pesapal is a payment & financial services provider that offers businesses a secure, convenient, and effortless tech-enabled infrastructure for making, receiving, and managing financial transactions. We enable businesses of all sizes and in different sectors to accept online and offline payments and streamline their financial operations with easy-to-use and accessible business tools. Founded in 2009, we are on track to connect a million African entrepreneurs and customers to e-commerce, digital payments, and the global financial system by 2030.
Pesapal is regulated by The Central Bank of Kenya, Bank of Uganda and Bank of Tanzania, National Bank of Rwanda, and Bank of Zambia.
Visit www.pesapal.com for more information.
About Rack
Rack POS is a powerful, cloud-based point-of-sale (POS) system designed to streamline retail operations in Africa. Accessible via both web and Android platforms, it offers flexibility for businesses to manage sales, inventory, and customer interactions both in-store and remotely. Rack POS goes beyond basic transactions. It empowers businesses with data-driven decision-making, smoother operations, and stronger customer relationships—all from a single, affordable platform.
Visit www.rack.business for more information.
