BANGKOK, Thailand / RankWire.AI / – According to the World Trade Organization, multilateral development banks are set to allocate approximately US$10 billion in supply chain finance to developing economies in 2026. This represents a two- to threefold rise compared to 2024 figures. The total direct financing for this year is around $65 billion, a significant increase from the roughly $35 billion seen annually prior to the COVID-19 pandemic. Both low-income and middle-income nations are benefiting from this financial support.
The information was shared during a roundtable convened in Bangkok on October 16, coinciding with the 2026 Annual Meetings of the World Bank Group and the International Monetary Fund, which took place in Thailand from October 12 to 18. The event was co-organized by the WTO and the International Finance Corporation. Participants discussed the advancements made in expanding supply chain finance within developing nations and outlined key priorities for further collaboration.
Supply chain finance facilitates access to affordable funding for small and medium-sized enterprises based on their sales to larger buyers. This system enhances cash flow and promotes the inclusion of smaller suppliers in cross-border global trade. The WTO highlighted that such financial solutions can ease working capital constraints, yet many firms in low-income and vulnerable economies still encounter difficulties in securing these resources. Changing trade dynamics and economic conditions have made access more challenging for some businesses.
Leaders of development banks endorse collaborative strategies
WTO Director-General Ngozi Okonjo-Iweala participated alongside heads of development banks and international bodies. She emphasized that small businesses require better access to finance to leverage trade opportunities and foster economic growth. She also noted that increased coordination among multilateral organizations can help close existing financing gaps. Makhtar Diop, the Managing Director of the IFC, co-chaired the session and stated that supply chain finance has the potential to revolutionize emerging markets when capital, legal frameworks, digital platforms, and market capacity are integrated effectively.
Diop pointed out that development banks must do more than just provide capital; they should also attract private investors by enhancing regulations and supporting market operations. Furthermore, they can allocate funds to smaller firms and markets where access to financing remains limited. The roundtable explored methods to attract more private sector investment into supply chain finance, focusing on practical solutions to expand access in underserved markets and to assist smaller businesses and exporters in handling supply chain disruptions.
Strategic plans for the next development phase outlined
Discussions covered topics such as financing in local currencies for product innovation, partnership development, and capacity building. Raising awareness of financial products available to businesses was also a key focus. A joint statement issued in 2024 committed partners to strengthening supply chain trade in emerging markets. Since then, efforts have included expanding financing programs, enhancing legal and regulatory frameworks, and building market infrastructure. Financial institutions have also worked to improve institutional strength and diversify their product offerings.
Participants reaffirmed their commitment to collaborate 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 maintain coordination with the WTO Secretariat, the International Chamber of Commerce, and FCI, the global body for factoring and receivables finance. The upcoming phase aims to focus on reaching underserved businesses, increasing private sector investments, and developing more robust supply chain finance systems.