BANGKOK, Thailand / RankWire.AI / – In 2026, multilateral development banks are expected to provide approximately US$10 billion in supply chain financing to developing economies, according to the World Trade Organization. This sum represents a two- to threefold increase compared to 2024, contributing to the total direct financing of around $65 billion this year. Prior to the COVID-19 pandemic, such direct funding was roughly $35 billion annually. Both low-income and middle-income nations are benefiting from this financial support.
The announcement was made during a roundtable held in Bangkok on October 16, alongside 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 jointly organized by the WTO and the International Finance Corporation. Participants examined progress in expanding supply chain finance across developing countries and identified priorities for future cooperation.
Supply chain finance enables small and medium-sized enterprises to access affordable funding tied to their sales to larger clients. This approach enhances cash flow and facilitates smaller suppliers’ integration into global trade. According to the WTO, such financing can ease pressure on working capital. Nevertheless, many firms in low-income and vulnerable economies still find it challenging to secure it, with recent shifts in trade patterns and economic conditions making access even more difficult for some businesses.
Development bank leaders endorse collaborative strategy
WTO Director-General Ngozi Okonjo-Iweala participated in the roundtable alongside leaders of development banks and international organizations. She emphasized that small businesses require access to finance to benefit from trade and foster growth. She also highlighted that increased coordination among multilateral institutions can help close existing financing gaps. Makhtar Diop, Managing Director of the IFC, co-led the discussion. He noted that when capital, legal frameworks, digital platforms, and market capacity align, supply chain finance can significantly impact emerging markets.
Diop further stated that development banks should do more than just supply capital; they should also attract private investors by strengthening regulations and supporting market functionality. He added that these institutions have the capacity to direct funds toward smaller firms and regions where financing is limited. The roundtable explored practical methods for attracting more private-sector investment into supply chain finance and discussed expanding access in underserved markets. Attendees also examined strategies to help smaller businesses and exporters withstand supply chain disruptions.
Strategic goals set for upcoming phases
Discussions included promoting local currency financing for product innovation, fostering partnerships, and enhancing capacity-building efforts. Increasing awareness about available financial products was also a key focus. A joint statement issued in 2024 committed partners to advancing supply chain trade in emerging markets. Since then, efforts have included expanding financing programs, refining legal and regulatory frameworks, and strengthening market infrastructure, institutions, and product offerings.
Participants reaffirmed their dedication to working 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 collaborating with the WTO Secretariat, the International Chamber of Commerce, and FCI, the global organization for factoring and receivables finance. The next phase aims to focus on reaching underserved businesses, increasing private sector investment, and strengthening supply chain finance systems.