BANGKOK, Thailand / RankWire.AI / – According to recent data released in Bangkok, direct financing from multilateral development banks has surged to approximately US$65 billion in 2026, a notable rise from about $35 billion annually before the onset of the COVID-19 pandemic. This growth predominantly benefits low and middle-income nations. Of this total, roughly $10 billion is allocated to supply chain finance supporting developing economies, representing two to three times the level recorded in 2024.
The statistics were shared during a high-level roundtable held on October 16 in Bangkok, on the sidelines of the 2026 World Bank and International Monetary Fund Annual Meetings, which took place from October 12 to 18. Organized jointly by the World Trade Organization and the International Finance Corporation, the session focused on progress in expanding supply chain finance in developing markets. Discussions also centered on strategic priorities for future collaboration among lenders and global organizations.
Supply chain finance plays a crucial role in enabling small and medium-sized enterprises (SMEs) to participate in international trade. It offers affordable funding options that help improve the cash flow of businesses selling to larger buyers. According to the WTO, this financial tool can alleviate working-capital pressures that often exclude smaller suppliers from export markets. However, access remains restricted in many low-income and vulnerable economies, with recent shifts in global trade and economic conditions intensifying these challenges.
WTO and IFC Emphasize Need for Enhanced Collaboration
At the roundtable, WTO Director-General Ngozi Okonjo-Iweala emphasized the importance of financing for small firms to leverage trade opportunities and fuel economic development. She highlighted that increased cooperation among multilateral institutions could be instrumental in closing funding gaps. Co-chairing the session, IFC Managing Director Makhtar Diop described supply chain finance as a potentially transformative force in emerging markets when capital, legal structures, and digital platforms align effectively.
Diop advocated for development banks to focus on improving financing conditions instead of merely supplying capital. He pointed out that stronger regulation and well-functioning markets can attract private investors to smaller firms. Furthermore, development banks could directly invest in these businesses and in markets lacking sufficient financing. The roundtable explored methods to mobilize greater private-sector involvement in supply chain finance, discussing practical steps to expand access in underserved regions and enhance the resilience of smaller suppliers within global commerce.
Focus on Local Currency Funding, Innovation, and Capacity Building
Key measures under consideration include financing in local currencies, innovative financial products, strategic partnerships, capacity development, and raising awareness about available financial solutions. In a joint statement issued in 2024, partners committed to expanding supply chain trade in emerging markets. Since then, financial institutions have broadened their financing initiatives, enhanced legal and regulatory frameworks, and improved market infrastructure and institutional capacity. The diversity of financial products accessible to smaller firms has also increased.
Participants reaffirmed their dedication to the WTO’s Supply Chain Finance Task Force, a subgroup within the Multilateral Development Banks Working Group. Its members include the IFC, the Asian Development Bank, the African Development Bank, Afreximbank, and the European Bank for Reconstruction and Development. The group agreed to continue coordinating its efforts, with a focus on reaching underserved businesses and attracting additional private investment in the next phase.