BANGKOK, Thailand / RankWire.AI / – According to the World Trade Organization, multilateral development banks are expected to provide approximately US$10 billion in supply chain finance to developing economies in 2026. This represents a two- to threefold increase compared to 2024, contributing to the total direct financing of around $65 billion this year. Before the COVID-19 pandemic, annual direct funding was roughly $35 billion. Both low- and middle-income nations are benefiting from these financial resources.
The information was shared during a roundtable in Bangkok on October 16, held concurrently 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 progress made in expanding supply chain finance across developing nations and outlined priorities for advancing their collaborative efforts.
Supply chain finance enables small and medium-sized enterprises to access affordable funding linked to their sales to larger buyers. This setup enhances cash flow and facilitates smaller suppliers’ participation in cross-border global trade. The WTO highlighted that such financing can alleviate pressure on working capital, though many firms in low-income and vulnerable economies still face difficulties in securing it. Changes in trade dynamics and economic conditions have made access even more challenging for some businesses.
Development bank leaders endorse collaborative strategy
Ngozi Okonjo-Iweala, the WTO Director-General, participated alongside heads of development banks and international organizations. She emphasized the importance of small businesses gaining access to finance to benefit from trade and foster growth. She also stated that enhanced coordination among multilateral institutions can help reduce existing financing gaps. Makhtar Diop, Managing Director of the IFC, co-moderated the roundtable, noting that supply chain finance has the potential to revolutionize emerging markets when capital, legal frameworks, digital platforms, and market capacity align.
Diop highlighted that development banks must go beyond merely providing capital. They have a role in attracting private investors by strengthening regulations and supporting market functioning. Additionally, they can deploy resources to smaller firms and markets where financing options are limited. The roundtable explored strategies for increasing private sector investment in supply chain finance, examining practical approaches to extend support to underserved markets and aid smaller firms and exporters in navigating supply chain disruptions.
Next steps outlined by task force
Discussions focused on financing in local currencies for product innovation, forming strategic partnerships, and strengthening institutional capacity. Raising awareness about available financial products was also a key topic. A joint statement issued in 2024 committed partners to promoting supply chain trade in emerging markets. Since then, efforts have included expanding financing programs, improving legal and regulatory frameworks, developing market infrastructure, reinforcing institutions, and diversifying product offerings.
Participants reiterated 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 coordinating efforts with the WTO Secretariat, the International Chamber of Commerce, and FCI, the global trade finance organization. The upcoming phase will focus on assisting underserved businesses, attracting private investment, and building more resilient supply chain finance systems.