Pesapal Partners With RACK To Digitize Small Scale Businesses

Pesapal, a leading payments and financial services provider, has partnered with RACK to help small businesses across East Africa move from outdated paper-based systems to a modern digital platform. This new partnership aims to make it easier for small and medium-sized enterprises (SMEs) to manage their sales, inventory, payments, and taxes all in one place.

Today, many small businesses in countries like Kenya, Uganda, and Tanzania still use handwritten receipts, manual inventory logs, and disconnected payment systems. These old ways of working slow down business growth, lead to mistakes, and make it hard for business owners to get loans or attract investors. In fact, according to the International Finance Corporation (IFC), over 80% of the 30 million SMEs in East Africa still operate informally, without proper digital records or systems.

Pesapal Partners With RACK To Digitize Small Businesses by introducing the RACK POS (Point of Sale) solution. This tool covers everything a business needs: tracking sales, managing inventory, recording payments, handling petty cash, and even keeping tabs on business performance. The system can be used on both web and Android devices, so business owners can run their operations from anywhere, even on their phones.

Pesapal Partners With RACK To Digitize Small Scale Businesses

Agosta Liko, CEO of Pesapal, says, “Ours is not just a partnership, it is a response to one of the most urgent problems faced by businesses in East Africa, the ease of starting, running, and scaling a business.” By using the RACK POS, businesses can quickly create a digital footprint. Within just six months, SMEs can build up verified transaction histories and digital records. These records are important because they help businesses qualify for credit and funding, which has been out of reach for many due to lack of proper documentation.

Pesapal Partnership With RACK is not just about technology; it’s about giving small businesses a fighting chance. Most SMEs in the region have struggled to access formal credit, with only about 20–25% able to get loans, mostly because they don’t have digital records or consistent transaction data. By digitizing their operations, these businesses can finally become credit-worthy and unlock new opportunities for growth.

Ferdinand Eloto, Co-Founder and Team Lead of RACK, explains, “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.” The centralized control and reporting features are especially useful for businesses with more than one location.

This partnership is a big step forward for financial inclusion in East Africa. By helping small businesses modernize, Pesapal Partners With RACK To Digitize Small Scale Businesses is turning everyday business tools into a way for entrepreneurs to grow, access funding, and build a better future. As Liko puts it, “This isn’t just about software. It’s about giving small businesses a fighting chance”.

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