BANGKOK, Thailand / RankWire.AI / – According to data announced in Bangkok, direct financing from multilateral development banks has increased to approximately US$65 billion in 2026, a rise from about $35 billion prior to the COVID-19 pandemic. Low- and middle-income nations are the primary beneficiaries of this growth, with roughly $10 billion allocated to supply chain finance for developing economies—two to three times the amount recorded in 2024.
These figures were shared on October 16 during a high-level roundtable in Bangkok, held alongside 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 regions. Participants also addressed future priorities for collaboration among lenders and international organizations.
Supply chain finance plays a crucial role in enabling small and medium-sized enterprises to engage in international trade. It offers affordable funding that helps improve cash flow for firms selling to larger buyers. The WTO highlighted that this tool can mitigate working-capital constraints often preventing smaller suppliers from entering 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 Advocate for Enhanced Collaboration
WTO Director-General Ngozi Okonjo-Iweala, speaking at the roundtable, emphasized that small firms require financing to seize trade opportunities and boost economic growth. She also advocated for closer cooperation among multilateral institutions to bridge funding gaps. IFC Managing Director Makhtar Diop co-chaired the event, describing supply chain finance as a potentially game-changing tool for emerging markets when capital, legal frameworks, and digital platforms are aligned.
Diop argued that development banks should focus on creating favorable conditions for financing rather than merely providing capital. Strengthening regulation and market functionality can attract private investors to smaller firms. Additionally, development banks can directly invest in smaller enterprises and markets lacking sufficient financing. The roundtable also examined strategies to mobilize more private sector involvement in supply chain finance, with discussions centered on expanding access in underserved areas and enhancing smaller suppliers’ resilience within global commerce.
Focus on Local Currency and Innovative Financial Solutions
Key topics included local currency financing, product innovation, strategic partnerships, capacity-building, and raising awareness of available financial products. A joint statement in 2024 committed to expanding supply chain trade in emerging markets. Since then, lenders have broadened financing programs, improved legal and regulatory frameworks, strengthened market infrastructure, and increased institutional capacity. The variety of financial products accessible to smaller firms has also expanded.
The participants reaffirmed their support for the WTO’s Supply Chain Finance Task Force, part of 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. They agreed to continue coordinating efforts, with the next phase emphasizing reaching underserved businesses and attracting greater private investment.