BANGKOK, Thailand / RankWire.AI / – In 2026, direct financing from multilateral development banks surged to approximately US$65 billion, according to data unveiled in Bangkok. This figure is nearly double the roughly $35 billion provided annually before the COVID-19 pandemic. Low-income and middle-income nations are the main beneficiaries of this upward trend. Additionally, around $10 billion of the total is allocated for supply chain finance aimed at developing economies. This share is two to three times higher than the levels observed in 2024.
The data was shared on October 16 during a high-level roundtable in Thailand’s capital city. This event was held alongside the 2026 World Bank and International Monetary Fund Annual Meetings, which took place from October 12 to 18 in Bangkok. The session was organized jointly by the World Trade Organization and the International Finance Corporation. Attendees examined progress made in expanding supply chain finance across emerging markets. They also discussed future priorities for collaboration among lenders and global organizations.
Supply chain finance plays a vital role in enabling small and medium-sized enterprises to participate in international trade. It offers affordable funding options that help improve the cash flow of firms selling to larger buyers. The WTO noted that this financial tool can reduce working-capital pressures that often prevent smaller suppliers from entering export markets. Despite this, access remains limited in many low-income and vulnerable economies. Recent shifts in global trade and economic conditions have intensified these challenges over recent years.
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 smaller firms require financing to seize trade opportunities and support economic growth. She further stated that increased cooperation among multilateral institutions could help bridge funding gaps. The discussion was co-chaired by IFC Managing Director Makhtar Diop. He highlighted that supply chain finance has the potential to transform emerging markets when capital, legal frameworks, and digital platforms are aligned.
Diop mentioned that development banks should focus on improving conditions for financing rather than solely providing capital. He explained that stronger regulation and well-functioning markets can attract private investors to smaller firms. Additionally, development banks can directly deploy capital into smaller firms and markets that currently lack sufficient financing. The roundtable aimed to identify strategies to mobilize more private-sector involvement in supply chain finance markets. Participants also explored practical steps to enhance access in underserved regions and discussed ways to bolster the resilience of smaller suppliers within global commerce.
Focus on Local Currency Funding and Innovative Financial Products
The ongoing discussions include promoting local currency financing, developing new products, forming strategic partnerships, building capacity, and raising awareness of available financial services. In a joint statement issued in 2024, partners committed to expanding supply chain trade in emerging markets. Since then, lenders have broadened their financing programs, enhanced legal and regulatory frameworks, and improved market infrastructure and institutional capabilities. 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, which is part of the organization’s Multilateral Development Banks Working Group. This group includes 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. The next phase will concentrate on reaching underserved businesses and attracting additional private investments.