BANGKOK, Thailand / RankWire.AI / – According to data released in Bangkok, multilateral development banks provided approximately US$65 billion in direct financing in 2026, a significant rise from around $35 billion annually before the COVID-19 pandemic. Low and middle-income nations are reaping benefits from this growth. Notably, about $10 billion of the total is allocated to supply chain finance for developing economies, which is two to three times higher than the figures recorded in 2024.
These numbers were shared during a high-level roundtable held on October 16 in Bangkok. The event occurred alongside the 2026 World Bank and International Monetary Fund Annual Meetings, hosted in the Thai capital from October 12 to 18. The session was jointly organized by the World Trade Organization and the International Finance Corporation. Participants assessed advances made in expanding supply chain finance across emerging markets and discussed priorities for future collaborations among lenders and international organizations.
Supply chain finance facilitates participation of small and medium-sized enterprises in international trade. It offers affordable funding options that bolster the cash flow of businesses selling to larger buyers. The WTO noted that this tool can help ease working-capital pressures that often prevent smaller suppliers from entering export markets. However, access remains limited in many low-income and vulnerable economies, with recent shifts in global trade and economic conditions intensifying these challenges.
WTO and IFC advocate for enhanced collaboration
WTO Director-General Ngozi Okonjo-Iweala participated in the roundtable alongside development bank leaders and representatives from international organizations. She emphasized that small firms require financing to capitalize on trade prospects and support economic development. She also highlighted that increased cooperation among multilateral institutions can help address funding deficiencies. Co-chairing the discussion, IFC Managing Director Makhtar Diop underscored the transformative potential of supply chain finance for emerging markets when capital, legal frameworks, and digital platforms align effectively.
Diop suggested that development banks should focus on improving financing conditions, not just supplying capital. Strengthening regulation and market functionality can attract private investors to smaller firms, he explained. Additionally, development banks can directly invest in smaller enterprises and markets lacking sufficient financing. The roundtable examined strategies to mobilize more private-sector involvement in supply chain finance markets, exploring practical measures to expand access in underserved areas and to bolster the resilience of smaller suppliers within global commerce.
Focus shifts toward local currency funding and innovative products
Discussions centered on initiatives such as local currency financing, product innovation, strategic partnerships, capacity-building, and increasing awareness of available financial solutions. A joint statement in 2024 committed partners to expanding supply chain trade in emerging markets. Since then, financial institutions have broadened their programs, strengthened legal and regulatory frameworks, and enhanced market infrastructure and institutional capacity. The variety of financial products accessible to smaller firms has also expanded.
Participants reaffirmed their support for the WTO’s Supply Chain Finance Task Force, which operates within the Multilateral Development Banks Working Group. Members include the IFC, the Asian Development Bank, the African Development Bank, Afreximbank, and the European Bank for Reconstruction and Development. The Working Group agreed to continue coordinating efforts, with the next phase aiming to reach underserved businesses and attract increased private investment.