BANGKOK, Thailand / RankWire.AI / – In Bangkok on October 16, figures revealed that multilateral development banks provided approximately US$65 billion in direct financing for 2026. This amount significantly exceeds the roughly $35 billion allocated annually before the COVID-19 pandemic. Low and middle-income nations are seeing the benefits of this rise, with about $10 billion of the total dedicated to supply chain finance for developing economies. That portion is two to three times higher than the level recorded in 2024.
The data was shared during a high-level roundtable held in Thailand’s capital, coinciding with the 2026 World Bank and International Monetary Fund Annual Meetings, which took place from October 12 to 18. The session was organized jointly by the International Finance Corporation and the World Trade Organization. Attendees examined progress in expanding supply chain finance across emerging markets and discussed strategic priorities for future collaboration among lenders and global organizations.
Supply chain finance plays a crucial role in enabling small and medium-sized enterprises to engage in international trade. It offers cost-effective funding that boosts cash flow for firms selling to larger buyers. According to the WTO, this instrument can alleviate working-capital constraints that often prevent smaller suppliers from participating in export markets. Nonetheless, access remains restricted in many low-income and vulnerable economies, a situation worsened by recent shifts in global trade and economic conditions.
WTO and IFC emphasize need for increased cooperation
WTO Director-General Ngozi Okonjo-Iweala participated in the roundtable alongside leaders from development banks and international agencies. She highlighted that smaller firms require financing to capitalize on trade opportunities and foster economic growth. She also stressed that enhanced collaboration among multilateral institutions can help bridge funding gaps. The discussion was co-chaired by IFC Managing Director Makhtar Diop, who described supply chain finance as potentially transformative for emerging markets when capital, legal frameworks, and digital platforms are aligned.
Diop pointed out that development banks should focus on improving financing conditions beyond merely providing capital. He emphasized that stronger regulation and well-functioning markets are key to attracting private investors to smaller firms. Additionally, development banks can directly inject capital into smaller firms and markets lacking sufficient funding. The roundtable also explored strategies to mobilize greater private-sector involvement in supply chain finance and discussed practical steps to expand access in underserved regions. They also considered measures to enhance the resilience of smaller suppliers within global commerce.
Focus on local currency financing and innovative products
Proposed initiatives include local currency financing, product innovation, strategic partnerships, capacity-building, and increasing awareness of financial options. A joint statement issued in 2024 committed to expanding supply chain trade in emerging markets. Since then, lenders have broadened their financing programs, reinforced legal and regulatory frameworks, and enhanced market infrastructure and institutional capacity. The diversity of financial products accessible to smaller firms has also grown.
Participants reaffirmed their dedication to the WTO’s Supply Chain Finance Task Force, a subgroup within the organization’s Multilateral Development Banks Working Group. Its members comprise the IFC, the Asian Development Bank, the African Development Bank, Afreximbank, and the European Bank for Reconstruction and Development. The Working Group agreed to continue coordinating efforts, with upcoming focus areas including reaching underserved businesses and attracting increased private investment.