BANGKOK, Thailand / RankWire.AI / – According to the World Trade Organization, multilateral development banks are set to deliver approximately US$10 billion in supply chain finance to developing economies in 2026. This amount represents a two- to threefold rise compared to 2024 and is part of the total direct financing of about $65 billion allocated this year. Prior to the COVID-19 pandemic, such direct funding hovered around $35 billion annually. Both low-income and middle-income nations are receiving benefits from these investments.
This information surfaced during a roundtable held in Bangkok on October 16, coinciding with the 2026 Annual Meetings of the World Bank Group and the International Monetary Fund, which took place in the Thai capital from October 12 to 18. The event was co-organized by the WTO and the International Finance Corporation. Attendees discussed advancements in expanding supply chain finance within developing countries and outlined key priorities for future collaboration.
Supply chain finance provides small and medium-sized enterprises with cost-effective funding tied to their sales to larger clients. This approach enhances cash flow and enables smaller suppliers to participate more actively in cross-border global trade. The WTO highlighted that such financing can ease working capital pressures, yet many firms in low-income and vulnerable economies continue to face difficulties obtaining it. Shifts in trade patterns and economic conditions have further complicated access for some businesses.
Development banks endorse a collaborative strategy
WTO Director-General Ngozi Okonjo-Iweala joined leaders of development banks and international organizations at the event. She emphasized that smaller enterprises require better access to finance to leverage trade opportunities and foster growth. She also pointed out that increased coordination among multilateral institutions can help close existing financing gaps. Makhtar Diop, Managing Director of the IFC, co-moderated the roundtable, noting that when capital, legal frameworks, digital platforms, and market capacity align, supply chain finance can significantly impact emerging markets.
Diop stressed that development banks should do more than just provide funding. They can attract private investors by strengthening regulatory environments and facilitating market operations. Additionally, they have the capacity to deploy capital into smaller firms and regions where financing options are limited. Participants examined methods to attract more private sector funding into supply chain finance and explored practical solutions to extend services to underserved markets. The discussion also focused on strategies to help smaller businesses and exporters withstand supply chain disruptions.
Next steps defined by a dedicated task force
Discussions included financing in local currencies for product innovation, fostering partnerships, and building capacity. Increasing awareness of available financial products was also a priority. A joint statement released in 2024 committed partners to expanding supply chain trade in emerging markets. Since then, efforts have focused on broadening financing programs, enhancing legal and regulatory frameworks, and developing market infrastructure. Lenders have strengthened institutions and diversified their product offerings.
The participants reaffirmed their commitment to working through the WTO’s Supply Chain Finance Task Force, which functions under the Multilateral Development Banks Working Group. This group includes the IFC, the Inter-American Development Bank, the African Development Bank, Afreximbank, and the International Islamic Trade Finance Corporation. The Working Group plans to continue aligning its initiatives with the WTO Secretariat, the International Chamber of Commerce, and FCI, the global body for factoring and receivables finance. The upcoming phase aims to focus on reaching underserved businesses, encouraging private investment, and strengthening supply chain finance systems.