BANGKOK, Thailand / RankWire.AI / – According to the World Trade Organization, multilateral development banks are set to provide approximately US$10 billion in supply chain finance to developing economies in 2026. This amount represents a two- to threefold rise from 2024 and accounts for part of the total direct financing of about $65 billion projected for this year. Prior to the COVID-19 pandemic, annual direct financing was roughly $35 billion. Funding benefits both low- and middle-income countries.
The announcement was made during a roundtable in Bangkok on October 16, which was held concurrently with the 2026 Annual Meetings of the World Bank Group and the International Monetary Fund in the Thai capital from October 12 to 18. The event was organized jointly by the WTO and the International Finance Corporation, where delegates reviewed progress in expanding supply chain finance across developing nations and outlined future collaboration priorities.
Supply chain finance enables small and medium-sized enterprises to access affordable funding tied to their sales to larger buyers, enhancing cash flow and supporting their integration into cross-border global trade. The WTO highlighted that such financing can alleviate working capital pressures, yet many companies in low-income and vulnerable economies still face difficulties in obtaining it. Changing trade dynamics and economic conditions have made access more challenging for some businesses.
Leaders of development banks advocate for a collaborative approach
Ngozi Okonjo-Iweala, the WTO Director-General, participated alongside heads of development banks and international organizations. She emphasized that smaller businesses require access to finance to leverage trade opportunities and foster growth. She also noted that increased coordination among multilateral institutions can help close financing gaps. Makhtar Diop, the Managing Director of the IFC, co-chaired the roundtable, stating that when capital, legal frameworks, digital platforms, and market capacity are combined, supply chain finance can revolutionize emerging markets.
Diop pointed out that development banks should do more than just provide capital; they can attract private investors by enhancing regulation and market functioning. Additionally, they can allocate capital to smaller firms and markets where financing options are limited. The roundtable explored strategies to increase private-sector investment in supply chain finance, focusing on practical ways to reach underserved markets and discussing how to support smaller exporters and exporters in resisting supply chain disruptions.
Next steps outlined by task force
Discussions covered topics including financing in local currencies for product innovation, forming partnerships, and capacity-building initiatives. Increasing awareness of available financial products was also a key focus. A joint statement in 2024 committed partners to boosting supply chain trade in emerging markets, and since then, efforts have expanded financing programs, enhanced legal and regulatory frameworks, and improved market infrastructure. Lenders have also strengthened institutions and diversified 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. Members include 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 aligning its efforts with the WTO Secretariat, the International Chamber of Commerce, and FCI, the global association for factoring and receivables finance. Moving forward, the focus will be on reaching underserved businesses, fostering private investment, and strengthening supply chain finance systems.