BANGKOK, Thailand / RankWire.AI / – According to the World Trade Organization, multilateral development banks are delivering approximately US$10 billion in supply chain financing to emerging economies in 2026. This amount represents an increase of two to three times compared to 2024 and constitutes part of the total direct funding of about $65 billion for the current year. Prior to the COVID-19 pandemic, such direct financing averaged roughly $35 billion annually. Both low-income and middle-income nations are benefiting from this support.
This information was shared during a roundtable discussion in Bangkok on October 16, which took place alongside the 2026 Annual Meetings of the World Bank Group and the International Monetary Fund, hosted in Thailand from October 12 to 18. The event was co-organized by the WTO and the International Finance Corporation. Participants evaluated the progress made in expanding supply chain finance across developing countries and outlined priorities for their future collaboration.
Supply chain finance enables small and medium-sized enterprises to access affordable capital tied to their sales to larger buyers. This arrangement enhances cash flow and facilitates smaller suppliers’ participation in cross-border global trade. The WTO indicated that such financing can ease pressure on working capital, yet many firms in vulnerable and low-income economies still face difficulties obtaining it. Fluctuations in trade patterns and economic conditions have made access more challenging for some enterprises.
Development bank leaders endorse collaborative strategies
Ngozi Okonjo-Iweala, the WTO Director-General, participated alongside heads of development banks and international organizations. She emphasized that small businesses need better access to financial resources to leverage trade and promote growth. She also highlighted that enhanced coordination among multilateral entities can help close existing financing gaps. Makhtar Diop, the Managing Director of the IFC, co-chaired the roundtable and noted that supply chain finance could revolutionize emerging markets once capital, legal frameworks, digital platforms, and market capacity are aligned.
Diop pointed out that development banks should extend their role beyond capital provision. They can attract private investors by improving regulation and ensuring market efficiency. Additionally, these banks can channel funds into smaller firms and regions where financing options are limited. The discussion also focused on strategies to attract more private sector investment into supply chain finance, as well as practical approaches to expand access to underserved markets. Efforts were also directed at supporting smaller firms and exporters in managing supply chain disruptions.
Next steps outlined by the task force
The dialogue covered topics such as financing in local currencies, fostering product innovation, developing partnerships, and building capacity. Increasing awareness of available financial products was also a key point. A joint statement issued in 2024 committed partners to boosting supply chain trade in emerging markets. Since then, efforts have focused on expanding financing initiatives, refining legal and regulatory environments, and building market infrastructure. Lenders have also strengthened institutions and diversified their 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. 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 agreed to maintain coordination with the WTO Secretariat, the International Chamber of Commerce, and FCI, the global body representing factoring and receivables finance. Their upcoming phase will focus on reaching underserved businesses, encouraging private investment, and enhancing supply chain finance infrastructure.