BANGKOK, Thailand / RankWire.AI / – According to the World Trade Organization, multilateral development banks are expected to deliver approximately US$10 billion in supply chain financing to developing nations in 2026. This amount represents a two- to threefold increase compared to 2024, contributing to a total of about $65 billion in direct financing for this year. Prior to the COVID-19 pandemic, such direct funding averaged around $35 billion annually. Both low- and middle-income countries are benefiting from this financial support.
This information was shared during a roundtable convened 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. The event was co-organized by the WTO and the International Finance Corporation. Attendees evaluated the progress made in expanding supply chain finance across emerging economies and discussed priorities for their future collaboration.
Supply chain finance provides small and medium-sized enterprises with cost-effective funding tied to their sales to larger buyers. This setup 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; however, many firms operating in low-income and vulnerable economies still face difficulties accessing these funds. Shifts in trade dynamics and economic conditions have made it more challenging for some businesses to secure financing.
Leaders of development banks endorse a collective strategy
Ngozi Okonjo-Iweala, the WTO Director-General, participated alongside leaders from development banks and international organizations. She emphasized that small businesses require access to finance to benefit from trade and foster economic growth. She also noted that increased coordination among multilateral institutions can help close financing gaps. Makhtar Diop, Managing Director of the IFC, co-chaired the roundtable and stated that supply chain finance has the potential to transform emerging markets when capital, legal frameworks, digital platforms, and market capacity align.
Diop further mentioned that development banks should go beyond simply providing capital. They can attract private investors by improving regulations and supporting market functioning. He added that these banks are capable of deploying capital to smaller firms and regions where financing options are limited. The roundtable addressed ways to mobilize more private-sector investment into supply chain finance, exploring practical methods to extend services to underserved markets and assist smaller firms and exporters in managing supply chain disruptions.
Strategic plans for upcoming stages outlined
Discussions focused on financing in local currencies, product innovation, partnerships, and capacity-building efforts. Raising awareness about available financial products was also a priority. A joint statement issued in 2024 committed partners to strengthening supply chain trade in emerging markets. Since then, efforts have focused on expanding financing programs, enhancing legal and regulatory systems, and building market infrastructure. Financial institutions have worked to reinforce institutions and diversify their product offerings.
Participants reaffirmed their commitment to work through the WTO’s Supply Chain Finance Task Force, which operates under the Multilateral Development Banks Working Group. The 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 collaborating with the WTO Secretariat, the International Chamber of Commerce, and FCI, the global association for factoring and receivables finance. Future efforts will target underserved businesses, promote private sector investment, and develop more resilient supply chain finance systems.