BANGKOK, Thailand / RankWire.AI / – According to the World Trade Organization, multilateral development banks are expected to allocate approximately US$10 billion in supply chain finance to developing nations in 2026. This sum represents a two- to threefold rise compared to 2024, contributing to the overall direct funding of about $65 billion this year. Prior to the COVID-19 pandemic, annual direct financing was roughly $35 billion. Both low- and middle-income countries are gaining from this financial support.
The figures were presented during a roundtable discussion in Bangkok on October 16, which coincided with the 2026 Annual Meetings of the World Bank Group and the International Monetary Fund held in the Thai capital from October 12 to 18. The event was co-organized by the WTO and the International Finance Corporation, with delegates reviewing progress in expanding supply chain finance across developing countries. They also outlined key priorities for future cooperation.
Supply chain finance provides small and medium-sized enterprises with affordable funding linked to their sales to larger buyers. This type of financing enhances cash flow and facilitates smaller suppliers’ participation in cross-border global trade. The WTO highlighted that such financial arrangements can ease pressure on working capital, yet many firms operating in low-income and vulnerable economies still face challenges in accessing it. Shifts in trade flows and economic conditions have made it increasingly difficult for some businesses to secure necessary funds.
Support from development banks endorses a collaborative strategy
WTO Director-General Ngozi Okonjo-Iweala participated alongside leaders from development banks and international organizations. She emphasized that small enterprises require access to finance to capitalize on trade opportunities and foster growth. She also pointed out that improved coordination among multilateral institutions could help close existing financing gaps. Makhtar Diop, Managing Director of the IFC, co-chaired the roundtable, noting that when capital, legal frameworks, digital platforms, and market capacity align, supply chain finance can revolutionize emerging markets.
Diop further stated that development banks need to do more than merely supply capital. They can attract private investors by strengthening regulations and enhancing market functioning. He also mentioned that these banks can allocate capital to smaller firms and regions where financing remains limited. The discussion focused on strategies to attract more private-sector investment into supply chain finance, exploring ways to reach underserved markets and support smaller exporters facing supply chain disruptions.
Planning for future steps involves targeted initiatives
Discussions included local currency financing for product development, partnerships, and capacity-building efforts. Raising awareness about available financial products also featured prominently. A joint statement issued in 2024 committed partners to boosting supply chain trade in emerging markets. Since then, efforts have expanded financing programs, enhanced legal and regulatory frameworks, and strengthened market infrastructure. Lenders have diversified their offerings, reinforced institutions, and broadened product portfolios.
Participants reaffirmed their dedication to collaborating 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 intends to maintain its coordination with the WTO Secretariat, the International Chamber of Commerce, and FCI, the global organization for factoring and receivables finance. The upcoming phase will focus on reaching underserved businesses, encouraging private investments, and developing resilient supply chain finance systems.