Pesapal Partners with RACK to Digitize SME Operations Across East Africa

Payments firm Pesapal has partnered with local startup RACK to launch an integrated point-of-sale (POS) solution aimed at helping small and medium-sized enterprises (SMEs) transition from manual to digital operations.

Agosta Liko, CEO of Pesapal, described the partnership as more than a technology rollout: “It’s a response to one of the most urgent problems faced by businesses in East Africa, ease of starting, running, and scaling a business.”

The collaboration introduces a cloud-based POS platform that allows businesses to manage payments, inventory, petty cash, performance analytics, and tax records in one system. It’s a strategic move targeting the informal business sector, where more than 80% of SMEs still rely on handwritten receipts, paper inventory logs, and unlinked payment methods, according to the International Finance Corporation (IFC).

“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,” said Liko.

For many entrepreneurs, the lack of digital records has meant limited access to credit and capital. Currently, only 20–25% of SMEs in sub-Saharan Africa qualify for formal credit due to the absence of reliable transaction data. The RACK POS system aims to change that by generating verified transaction histories within six months, enabling access to credit directly from Pesapal.

Ferdinand Eloto, RACK’s Co-Founder and Team Lead, said the platform is designed with flexibility and scalability in mind. “Our solution gives business owners structure and visibility, no matter where they operate from. This partnership turns basic business tools into gateways for financial inclusion.”

The RACK POS solution is available on both web and Android platforms and is particularly well-suited for businesses with multiple outlets.

“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.