BANGKOK, Thailand / RankWire.AI / – Multilateral development banks have increased their direct financing to approximately US$65 billion in 2026, according to data shared in Bangkok. This figure is more than double the roughly $35 billion recorded before the COVID-19 pandemic. Developing nations with low and middle incomes are reaping the benefits of this surge. Of the total, around $10 billion is allocated to supply chain finance for emerging economies, a share that is two to three times higher than the levels seen in 2024.
These statistics were unveiled on October 16 during a high-level roundtable held in Thailand’s capital. The event was part of the 2026 World Bank and International Monetary Fund Annual Meetings, hosted in Bangkok from October 12 to 18. The session was organized jointly by the World Trade Organization and the International Finance Corporation. Attendees examined advances in expanding supply chain finance within developing markets and discussed priorities for future collaboration among lenders 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 bolster the cash flow of companies selling to larger buyers. The WTO highlighted that this financial instrument can alleviate working-capital pressures that often prevent smaller suppliers from accessing export markets. However, access remains constrained in many low-income and vulnerable economies, with recent global trade shifts and economic challenges intensifying these difficulties.
WTO and IFC emphasize the need for strengthened collaboration
At the roundtable, WTO Director-General Ngozi Okonjo-Iweala underscored the importance of financing for small firms to capitalize on trade opportunities and fuel economic development. She called for enhanced cooperation among multilateral institutions to bridge funding gaps. Co-chairing the session, IFC Managing Director Makhtar Diop described supply chain finance as having the potential to be transformative for emerging markets, especially when capital, legal frameworks, and digital platforms are aligned.
Diop argued that development banks should focus on creating better conditions for financing rather than merely supplying capital. He stressed that robust regulation and functioning markets can attract private investors to smaller companies. Additionally, development banks could directly invest in smaller firms and in markets lacking sufficient financing. The roundtable also discussed strategies to increase private-sector engagement in supply chain finance, including practical measures to expand access in underserved regions and improve the resilience of smaller suppliers within global commerce.
Focus areas include local currency financing and innovative products
The proposed initiatives encompass local currency funding, product development, partnerships, capacity-building, and raising awareness of available financial solutions. In a joint statement released in 2024, partners committed to expanding supply chain trade in emerging markets. Since then, financial institutions have broadened their financing programs, enhanced legal and regulatory frameworks, improved market infrastructure, and strengthened institutional capacity. The variety of financial products accessible to smaller firms has also increased.
All participants reaffirmed their dedication to the WTO’s Supply Chain Finance Task Force, which is part of the organization’s Multilateral Development Banks Working Group. The 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 its collaborative efforts, with the next phase aimed at reaching underserved businesses and attracting greater private investment.