Stakeholders in the ICT space have called on small and medium sized enterprises to integrate technology into their operations in order to streamline work as well as access opportunities for growth.
Despite advances in technology, many small and medium sized enterprises still rely on outdated tools such as handwritten receipts, manual inventory logs and disconnected payment systems to transact.
This manual way of operating has slowed the growth of these businesses, increased errors and locked them out of credit and capital opportunities.
According to the International Finance Corporation (IFC), only 20–25 percent of SMEs in sub-Saharan Africa are able to access formal credit due to the lack of digital records, consistent transaction data and formal registration.
“This lack of structure does not just slow growth; it actively locks entrepreneurs out of opportunity,” said Agosta Liko, CEO of Pesapal.
Mr. Liko was speaking while announcing a partnership between Pesapal and RACK, that is aimed at digitising businesses across East Africa.
The partnership will see the organisations deploy an integrated point of sale solution that enables businesses to manage their sales, inventory, payments and taxes on a single, centralised platform.
“Our 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,” posed Liko.
Within six months of using RACK POS, 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. It’s not just about digitization; it’s financial inclusion in motion,” stated Liko.
The RACK POS solution is available on both web and android, allowing business owners to manage operations from anywhere. Its centralized control and reporting feature makes it ideal for growing businesses with multiple locations.
“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,” said Ferdinand Eloto, Co-Founder and Team Lead of RACK.
Most importantly, having digital records will make it possible for SMEs to access credit and funding – something that has been out of reach for these businesses for a long time.
“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.
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