BANGKOK, Thailand / RankWire.AI / – According to the World Trade Organization, multilateral development banks are expected to provide roughly US$10 billion in supply chain financing to developing economies in 2026. This represents a two- to threefold increase from 2024 and is part of the total direct funding of approximately $65 billion for this year, compared to about $35 billion annually before the COVID-19 pandemic. Both low- and middle-income nations are gaining from these financial resources.
The figures were presented during a roundtable in Bangkok on October 16, which coincided with the 2026 Annual Meetings of the World Bank Group and the International Monetary Fund, held in the Thai capital from October 12 to 18. Co-organized by the WTO and the International Finance Corporation, the event brought together delegates to evaluate progress in expanding supply chain finance among developing countries and to identify priorities for future collaboration.
Supply chain finance provides small and medium-sized enterprises with affordable funding based on their sales to larger clients, enhancing cash flow and enabling smaller suppliers to participate in cross-border global trade. The WTO highlighted that this form of financing can ease the strain on working capital; however, many firms in low-income and vulnerable economies still encounter difficulties accessing it, especially as changes in trade patterns and economic conditions have made access more challenging for some businesses.
Development bank officials endorse collaborative strategy
WTO Director-General Ngozi Okonjo-Iweala participated alongside leaders of development banks and international organizations. She emphasized that small businesses need better access to finance to harness trade opportunities and foster growth, noting that enhanced coordination among multilateral institutions could help bridge existing financing gaps. Makhtar Diop, Managing Director of the IFC, co-chaired the roundtable, stating that supply chain finance can revolutionize emerging markets when capital, legal frameworks, digital infrastructure, and market capacity align.
Diop also highlighted that development banks should do more than merely provide capital; they can attract private investors by improving regulation and facilitating market functioning. He pointed out that these banks are capable of channeling funds into smaller firms and markets where financing options are limited. The roundtable discussed strategies to increase private-sector participation in supply chain finance, exploring practical methods to reach underserved markets and support smaller firms and exporters in resisting supply chain disruptions.
Strategic plans for future development outlined
Discussions included financing in local currencies for product innovation, along with forming partnerships and building capacity. Raising awareness about available financial products was also prioritized. A joint statement issued in 2024 committed partners to increase support for supply chain trade in emerging markets. Since then, efforts have included expanding financing schemes, enhancing legal and regulatory frameworks, and strengthening market infrastructure, institutions, and product offerings.
Participants reaffirmed their commitment to work through the WTO’s Supply Chain Finance Task Force, operating 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 also agreed to maintain coordination 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, attracting private investments, and strengthening supply chain finance systems.