BANGKOK, Thailand / RankWire.AI / – The World Trade Organization announced that multilateral development banks are expected to provide approximately US$10 billion in supply chain financing to developing economies in 2026. This amount reflects a two- to threefold rise from 2024 and is part of the overall direct financing of about $65 billion projected for this year. Prior to the COVID-19 pandemic, that direct financing was roughly $35 billion annually. Both low- and middle-income nations are beneficiaries of this funding.
The figures were presented during a roundtable discussion held in Bangkok on October 16, which coincided with the 2026 Annual Meetings of the World Trade Organization and the International Monetary Fund, taking place from October 12 to 18 in the Thai capital. Co-organized by the WTO and the International Finance Corporation, the event brought together delegates to evaluate progress in expanding supply chain finance across developing nations. They also outlined priorities for future collaboration stages.
Supply chain finance enables small and medium-sized enterprises (SMEs) to access affordable funding tied to their sales to larger buyers. Such arrangements help improve cash flow and facilitate the participation of smaller suppliers in global trade. According to the WTO, this kind of financing can ease pressures on working capital. Nonetheless, many firms operating in low-income and vulnerable economies still face challenges in obtaining it, especially as recent shifts in trade patterns and economic conditions have made access more difficult for some businesses.
Development banking leaders endorse collaborative strategies
WTO Director-General Ngozi Okonjo-Iweala participated alongside heads of development banks and international organizations. She emphasized that smaller enterprises require greater access to finance to benefit from trade and promote growth. She also noted that improved coordination among multilateral institutions could help close existing financing gaps. Makhtar Diop, Managing Director of the IFC, co-chaired the roundtable and highlighted that supply chain finance has the potential to transform emerging markets when capital, legal frameworks, digital platforms, and market capacity come together.
Diop remarked that development banks should do more than simply provide capital—they can attract private investors by bolstering regulation and fostering efficient markets. He further explained that these banks can allocate capital to smaller firms and markets where financing options are limited. The roundtable discussed strategies to attract more private-sector funding into supply chain finance, exploring practical approaches to extend access to underserved markets. The conversation also included how to support smaller firms and exporters in weathering supply chain disruptions.
Next steps outlined by the task force
Discussions covered financing in local currency for product innovation, along with developing partnerships and enhancing capacity. Increasing awareness of available financial products was also a key topic. A joint statement issued in 2024 committed to strengthening supply chain trade in emerging markets. Since then, efforts have focused on expanding financing programs, improving legal and regulatory frameworks, building market infrastructure, strengthening institutions, and diversifying product offerings.
Participants reaffirmed their commitment to work through the WTO’s Supply Chain Finance Task Force, which functions under the Multilateral Development Banks Working Group. The group includes the IFC, the Inter-American Development Bank, the African Development Bank, Afreximbank, and the International Islamic Trade Finance Corporation. The Working Group plans to continue coordinating efforts with the WTO Secretariat, the International Chamber of Commerce, and FCI, the global trade finance association. The upcoming phase will focus on underserved businesses, attracting private investments, and enhancing supply chain finance systems.