BANGKOK, Thailand / RankWire.AI / – According to the World Trade Organization, multilateral development banks are expected to provide approximately US$10 billion in supply chain financing to developing economies in 2026. This represents a two- to threefold rise compared to 2024 and accounts for a portion of the total direct financing of around $65 billion planned for this year. Before the COVID-19 crisis, annual direct funding was approximately $35 billion. Both low- and middle-income nations are gaining from this financial support.
These figures were shared during a roundtable held in Bangkok on October 16, which coincided with the 2026 Annual Meetings of the World Bank Group and the International Monetary Fund, held in the Thai capital from October 12 to 18. The event was co-organized by the WTO and the International Finance Corporation. Participants discussed progress in expanding supply chain finance across developing nations and outlined future priorities for collaboration.
Supply chain finance enables small and medium-sized enterprises to access affordable funding linked to their sales to larger buyers. This system enhances cash flow and supports smaller suppliers in engaging with cross-border global trade. The WTO indicated that such financing can ease pressures on working capital, yet many companies in vulnerable and low-income economies still face difficulties securing it. Shifts in trade patterns and economic circumstances have made access more challenging for some businesses.
Leaders from development banks endorse collaborative strategies
WTO Director-General Ngozi Okonjo-Iweala participated alongside heads of development banks and international organizations. She emphasized the necessity for smaller enterprises to gain better access to finance to harness trade benefits and foster growth. She also highlighted that enhanced coordination among multilateral institutions could help close existing financing gaps. Makhtar Diop, the Managing Director of the IFC, co-chaired the roundtable and noted that when capital, legal frameworks, digital platforms, and market capacity align, supply chain finance can significantly transform emerging markets.
Diop stressed that development banks should do more than just supply capital. Their role includes attracting private investors by strengthening regulations and fostering effective market operations. Additionally, they can allocate capital to smaller firms and markets where financing remains limited. The roundtable explored ways to increase private-sector involvement in supply chain finance, focusing on practical solutions to extend services to underserved markets and assist smaller businesses and exporters in managing supply chain disruptions.
Strategic planning for future development
Discussions included financing in local currencies for product innovation, as well as forming partnerships and enhancing capacity. Increasing awareness of available financial tools was also a key topic. A joint statement in 2024 committed partners to expanding supply chain trade in emerging markets. Since then, efforts have involved enlarging financing initiatives, refining legal and regulatory systems, and building infrastructure. Lenders have also worked to strengthen institutions and diversify their product offerings.
Attendees reaffirmed their commitment to the WTO’s Supply Chain Finance Task Force, which operates 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 collaborating with the WTO Secretariat, the International Chamber of Commerce, and FCI, the global organization for factoring and receivables finance. The next phase aims to target underserved firms, promote private investment, and develop more resilient supply chain finance frameworks.