BANGKOK, Thailand / RankWire.AI / – According to the World Trade Organization, multilateral development banks are expected to deliver approximately US$10 billion in supply chain finance to developing economies in 2026. This amount represents a two- to threefold increase compared to 2024 and constitutes part of the total direct financing of about $65 billion this year. Prior to the COVID-19 pandemic, such financing averaged roughly $35 billion annually. Both low- and middle-income nations are beneficiaries of these funds.
This information was shared during a roundtable discussion 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 from October 12 to 18 in Thailand’s capital. The event was co-organized by the WTO and the International Finance Corporation. Participants evaluated advancements in expanding supply chain finance across developing nations and outlined priorities for future collaborative efforts.
Supply chain finance provides small and medium-sized enterprises with affordable funding based on their sales to larger buyers. This arrangement enhances cash flow and facilitates smaller suppliers’ participation in cross-border global trade. The WTO highlighted that such financing can ease pressure on working capital, yet many firms in vulnerable and low-income economies still face challenges in securing it. Shifts in trade patterns and economic conditions have made access to this financing more difficult for some enterprises.
Leaders of development banks endorse collaborative strategies
WTO Director-General Ngozi Okonjo-Iweala participated alongside heads of development banks and international organizations. She emphasized the importance of providing smaller businesses with access to finance to foster trade and economic growth. She also noted that increased coordination among multilateral institutions can help bridge financing gaps. Makhtar Diop, the Managing Director of the IFC, co-chaired the roundtable and remarked that supply chain finance has the potential to transform emerging markets when capital, legal frameworks, digital platforms, and market capacity align.
Diop pointed out that development banks must extend their role beyond simply providing capital. They can attract private investors by strengthening regulations and improving market functioning. Additionally, they have the capacity to deploy funds to smaller firms and markets where access to finance remains limited. The roundtable explored strategies to bring more private sector investment into supply chain finance, focusing on ways to reach underserved markets and help smaller companies and exporters withstand supply chain disruptions.
Strategic planning for future development
Discussions covered topics such as local currency financing for product innovation, forming partnerships, and enhancing capacity-building efforts. Raising awareness about available financial products was also a key focus. A joint statement issued in 2024 committed partners to boosting supply chain trade in emerging markets. Since then, efforts have included expanding financing programs, refining legal and regulatory frameworks, and building market infrastructure. Institutions have also strengthened their operational capacity and diversified their product offerings.
Participants reaffirmed their dedication 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 agreed to continue collaborative efforts with the WTO Secretariat, the International Chamber of Commerce, and FCI, the global body representing factoring and receivables finance. The upcoming phase aims to target underserved businesses, promote private investments, and develop more resilient supply chain finance systems.