BANGKOK, Thailand / RankWire.AI / – Multilateral development banks have reported a total direct financing level of approximately US$65 billion for 2026, as announced during an event in Bangkok. This figure is a significant increase from the roughly $35 billion provided annually before the onset of the COVID-19 pandemic. Low- and middle-income nations are reaping the benefits of this growth, with about $10 billion of the overall sum allocated to supply chain finance initiatives supporting developing economies. This portion is two to three times larger than the amount documented in 2024.
The data was disclosed on October 16 at a high-level roundtable held in Bangkok, coinciding with the 2026 World Bank and International Monetary Fund Annual Meetings held there from October 12 to 18. The session was jointly organized by the World Trade Organization and the International Finance Corporation. Participants examined advances made in expanding supply chain finance across developing markets and discussed future priorities for cooperation among lenders and global 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 the cash flow for firms that sell to larger buyers. According to the WTO, this financial tool can mitigate working-capital challenges that often prevent smaller suppliers from accessing export markets. However, access remains limited in numerous low-income and vulnerable economies, with recent shifts in global trade and economic conditions intensifying these pressures.
WTO and IFC Emphasize Need for Enhanced Collaboration
WTO Director-General Ngozi Okonjo-Iweala participated in the roundtable alongside leaders from development banks and international organizations. She emphasized that small firms require adequate financing to seize trade opportunities and foster economic growth. Furthermore, she highlighted that increased cooperation among multilateral institutions could help bridge funding gaps. IFC Managing Director Makhtar Diop co-chaired the discussion, describing supply chain finance as potentially transformative for emerging markets when capital, legal frameworks, and digital platforms work in unison.
Diop stated that development banks should focus on improving the conditions for financing, rather than merely supplying capital. He noted that stronger regulation and effective markets could attract private sector investment into smaller firms. Additionally, development banks could directly deploy capital into smaller firms and markets that currently lack sufficient funding. The roundtable also explored ways to mobilize more private-sector involvement in supply chain finance markets, discussing practical steps to expand access in underserved regions and to bolster the resilience of smaller suppliers within global commerce.
Focus on Local Currency Funding and Innovative Products
Key topics discussed include local currency financing, product innovation, partnerships, capacity-building, and increasing awareness of available financial products. A joint statement issued in 2024 committed partners to expanding supply chain trade in emerging markets. Since that time, lenders have expanded financing programs, enhanced legal and regulatory frameworks, improved market infrastructure, and bolstered institutional capacity. The variety of financial products accessible to smaller firms has also grown significantly.
The participants reaffirmed their dedication to the WTO’s Supply Chain Finance Task Force, which operates within the organization’s Multilateral Development Banks Working Group. This group includes members such as 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 its coordinated efforts, with the next phase focusing on reaching underserved businesses and attracting increased private sector investment.