BANGKOK, Thailand / RankWire.AI / – In 2026, direct financing from multilateral development banks has surged to approximately US$65 billion, as revealed in a report issued in Bangkok. This figure is nearly double the $35 billion provided annually before the onset of the COVID-19 pandemic. The rise mainly benefits low and middle-income nations. Around $10 billion of the total is dedicated to supply chain finance aimed at developing economies, representing two to three times the level seen in 2024.
These statistics were shared during a high-level roundtable held in Bangkok on October 16. The gathering coincided with the 2026 World Bank and International Monetary Fund Annual Meetings, which took place in the Thai capital from October 12 to 18. The session was organized jointly by the World Trade Organization and the International Finance Corporation. Attendees discussed advancements in expanding supply chain finance across developing countries and outlined priorities for future collaboration among lending institutions and international organizations.
Supply chain finance plays a crucial role in enabling small and medium-sized enterprises to participate in international trade. It offers affordable funding solutions that help improve cash flow for companies selling to larger buyers. The WTO highlighted that this financial tool can alleviate working capital challenges that often prevent smaller suppliers from accessing export markets. However, access to supply chain finance remains restricted in numerous low-income and vulnerable economies, with recent changes in global trade and economic conditions intensifying these pressures.
WTO and IFC Emphasize Enhanced Collaboration
During the roundtable, WTO Director-General Ngozi Okonjo-Iweala joined leaders from development banks and international agencies. She emphasized that small firms require financing to capitalize on trade opportunities and support economic growth. She also stressed that closer cooperation among multilateral institutions could help bridge funding gaps. Makhtar Diop, Managing Director of the IFC, co-chaired the session and described supply chain finance as potentially transformative for emerging markets when capital, legal frameworks, and digital platforms align.
Diop highlighted that development banks should focus on improving financing conditions rather than merely providing capital. He noted that stronger regulation and well-functioning markets could attract private investors to smaller firms. Additionally, development banks can directly invest in smaller enterprises and underserved markets lacking sufficient financing. The roundtable aimed to identify strategies to mobilize more private-sector involvement in supply chain finance markets and discussed practical steps to increase access in underserved regions. The conversation also covered measures to enhance the resilience of smaller suppliers within global commerce.
Focus on Local Currency Finance and Innovative Financial Products
Proposed measures include expanding local currency financing, developing new financial products, forming strategic partnerships, building capacity, and raising awareness of available financial options. A joint statement from partners committed to increasing supply chain trade in emerging markets was issued in 2024. Since then, lenders have expanded financing initiatives, improved legal and regulatory frameworks, enhanced market infrastructure, and strengthened institutional capacity. The variety of financial products accessible to smaller businesses has also grown.
The participants reaffirmed their dedication to the WTO’s Supply Chain Finance Task Force, which operates within the Multilateral Development Banks Working Group. This group includes the IFC, Asian Development Bank, African Development Bank, Afreximbank, and the European Bank for Reconstruction and Development. The group agreed to continue coordinating efforts, with the next phase focusing on reaching underserved businesses and attracting increased private investment.