Agosta Like group CEO, Pesapal(left),Ferdinand Eloto, co-founder & team lead track (center). Photo | courtesy.
Financial technology firm Pesapal has partnered with RACK, a cloud-based point-of-sale (POS) platform, to roll out a fully integrated business management solution targeting millions of small and medium enterprises (SMEs) across Kenya, Uganda, and Tanzania.
The collaboration, announced on Tuesday, aims to simplify and digitize core business operations for SMEs, enabling them to manage sales, inventory, payments, and tax compliance from a single platform.
“This partnership is about powering Africa’s next generation of business leaders and ensuring no entrepreneur is left behind,” said Agosta Liko, CEO of Pesapal.
“With the RACK POS, we are not just providing technology – we are delivering a lifeline,” he added.
The new solution is designed to address a persistent challenge for many African businesses, the lack of digital infrastructure.
Despite being the backbone of East Africa’s economy, most SMEs still operate informally, relying on handwritten receipts, manual stock-taking, and disconnected payment methods practices that limit their access to credit and hinder growth.
According to the International Finance Corporation, only 20–25 percent of SMEs in sub-Saharan Africa can access formal credit due to limited digital records and transaction histories.
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Within six months of using the system, SMEs are expected to generate verifiable digital transaction data, making them eligible for business credit through Pesapal.
“This partnership brings structure, clarity, and visibility to businesses that have operated in the dark for too long,” Liko added. “It’s not just about digitization; it’s financial inclusion in motion.”
The RACK POS solution offers several features that make it attractive to SMEs, including:
- All-in-One Functionality, Combines sales tracking, inventory management, customer engagement tools, and payment processing.
- E-commerce Integration,Synchronizes online and in-store operations for real-time updates.
- Mobile Accessibility, Compatible with web and Android platforms, enabling remote management.
- Smart Payments, Supports mobile money, card, and cash payments with instant reconciliation.
- Multi-Branch Management, Centralized oversight for businesses with multiple locations.
- Customer Relationship Tools, Built-in CRM, loyalty programs, and automated communication.
- Performance Tracking, Real-time dashboards to monitor sales trends, restocking needs, and staff output.
- Growth Enablement, Supports credit profiling and access to financing for scaling operations.
The Importance of SME Business Tools in Raising Capital
Ferdinand Eloto, Co-Founder and Team Lead of RACK, said that digital records will provide a lifeline to SMEs seeking funding or credit. Lenders and investors often request a company’s revenue records and other documents to determine whether the venture is worth lending to or investing in.
“Most importantly, having digital records makes it possible for SMEs to access credit and funding something that has been out of reach for many,” said Eloto. “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.”
Built for African markets, the system also features mobile-first design, offline functionality, minimal hardware requirements, and tax compliance integration making it accessible even to micro-enterprises.
