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 nations in 2026. This amount reflects a two- to threefold growth compared to 2024 and is part of the total direct financing of around $65 billion allocated this year. Prior to the COVID-19 crisis, annual direct financing was roughly $35 billion. Both low-income and middle-income countries are benefitting from this financial support.
This information was shared during a roundtable discussion held in Bangkok on October 16, which coincided with the 2026 Annual Meetings of the World Bank Group and the International Monetary Fund, hosted in the Thai capital from October 12 to 18. The event was co-organized by the WTO and the International Finance Corporation. Attendees evaluated the progress made in expanding supply chain finance within developing economies and outlined key priorities for future cooperation efforts.
Supply chain finance offers small and medium-sized enterprises cost-effective funding based on their sales to larger buyers. This arrangement enhances cash flow and enables smaller suppliers to participate more actively in cross-border global trade. The WTO noted that such financing can alleviate working capital pressures. However, many firms operating in low-income and vulnerable economies continue to face difficulties in securing these funds. Shifts in trade dynamics and economic conditions have further complicated access for some businesses.
Development bank leaders endorse collaborative strategies
WTO Director-General Ngozi Okonjo-Iweala participated alongside leaders from development banks and international organizations, emphasizing that small businesses need access to finance to leverage trade opportunities and foster economic growth. She highlighted that enhanced coordination among multilateral institutions can help close existing financing gaps. Makhtar Diop, Managing Director of the IFC, co-chaired the roundtable and remarked that supply chain finance has the potential to revolutionize emerging markets when capital, legal frameworks, digital platforms, and market capacity align effectively.
Diop pointed out that development banks should go beyond simply providing capital. By strengthening regulations and assisting markets to operate efficiently, they can attract private investors. He also noted that these institutions can deploy funds directly into smaller firms and in markets where access to financing remains limited. The roundtable explored practical approaches to increasing private-sector involvement in supply chain finance, focusing on extending market access to underserved regions and supporting smaller exporters and exporters in enduring supply chain disruptions.
Strategic planning for future growth underway
Discussions included financing in local currencies to promote product innovation, as well as forming new partnerships and capacity-building initiatives. Raising awareness of available financial products also featured prominently. A joint statement issued in 2024 committed partners to strengthening supply chain trade in emerging markets. Since then, efforts have expanded financing programs, enhanced legal and regulatory frameworks, built market infrastructure, reinforced institutions, and diversified product offerings.
Participants reaffirmed their dedication to collaborating through the WTO’s Supply Chain Finance Task Force, which operates under the Multilateral Development Banks Working Group. Members of this group include the IFC, the Inter-American Development Bank, the African Development Bank, Afreximbank, and the International Islamic Trade Finance Corporation. The Working Group also agreed to continue coordinating efforts with the WTO Secretariat, the International Chamber of Commerce, and FCI, the global trade finance organization. Moving forward, their focus will be on reaching underserved businesses, encouraging private investments, and developing more resilient supply chain finance systems.