BANGKOK, Thailand / RankWire.AI / – According to the World Trade Organization, multilateral development banks are expected to deliver approximately US$10 billion in supply chain finance to developing economies in 2026, representing a significant increase—by a factor of two to three—from 2024. This amount forms part of the total direct financing of around $65 billion allocated this year, a substantial rise from the roughly $35 billion provided annually before the onset of the COVID-19 pandemic. Both low-income and middle-income nations stand to benefit from this influx of funding.
This information was shared during a roundtable held in Bangkok on October 16, which took place alongside the 2026 Annual Meetings of the World Trade Organization and the International Monetary Fund, hosted in Thailand’s capital from October 12 to 18. The event was co-organized by the WTO and the International Finance Corporation, where delegates discussed the progress made in expanding supply chain finance across developing countries and outlined key priorities for future collaborative efforts.
Supply chain finance enables small and medium-sized enterprises to access affordable funding linked directly to their sales to larger buyers, thereby improving their cash flow and allowing smaller suppliers to participate more actively in cross-border global trade. The WTO highlighted that such financial arrangements can ease pressures on working capital, yet many firms in low-income and vulnerable economies still find it difficult to secure this type of funding. Shifts in trade dynamics and economic conditions have further complicated access for some businesses, making the need for expanded financial support more urgent.
Support from development banks for collaborative strategies
During the roundtable, WTO Director-General Ngozi Okonjo-Iweala, alongside leaders of development banks and international organizations, emphasized that smaller firms require better access to financial resources to leverage trade opportunities and foster economic growth. She stressed that increased coordination among multilateral institutions could help close existing financing gaps. Makhtar Diop, the Managing Director of the IFC, who co-chaired the meeting, remarked that supply chain finance has the potential to transform emerging markets by aligning capital, legal frameworks, digital platforms, and market capacity.
Diop further pointed out that development banks should extend their roles beyond merely providing capital; they can attract private sector investors by enhancing regulatory environments and ensuring market efficiency. He also noted that these banks have the capacity to deploy funds directly into smaller firms and markets where access to financing remains limited. The roundtable explored how to increase private-sector participation in supply chain finance, with discussions focusing on practical methods to reach underserved markets and support smaller businesses and exporters in dealing with disruptions in supply chains.
Strategic planning for future expansion
Discussions also covered topics such as financing in local currencies for product innovation, as well as forming partnerships and building capacity. Raising awareness of available financial products was identified as a key step. A joint statement issued in 2024 committed to enhancing supply chain trade in emerging markets. Since then, efforts have focused on expanding financing programs, improving legal and regulatory frameworks, and strengthening the market infrastructure, institutions, and 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 members such as the IFC, the Inter-American Development Bank, the African Development Bank, Afreximbank, and the International Islamic Trade Finance Corporation. The Working Group plans to continue its collaboration with the WTO Secretariat, the International Chamber of Commerce, and FCI, the global association for factoring and receivables finance. The next phase aims to focus on reaching underserved businesses, boosting private investments, and establishing more robust supply chain finance systems.
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