BANGKOK, Thailand / RankWire.AI / – In Bangkok, figures reveal that multilateral development banks have provided approximately US$65 billion in direct financing during 2026. This marks a significant rise from around $35 billion annually before the onset of the COVID-19 pandemic. Low and middle-income nations are among the primary beneficiaries of this growth. Notably, about $10 billion of this total is allocated to supply chain finance for emerging economies. This portion is two to three times higher than the level documented in 2024.
On October 16, these data were shared during a high-level roundtable held in the Thai capital. The event took place alongside the 2026 World Bank and International Monetary Fund Annual Meetings, which occurred in Bangkok from October 12 to 18. The session was jointly organized by the World Trade Organization and the International Finance Corporation. Attendees examined advancements in expanding supply chain finance within developing markets and discussed strategic priorities for future collaboration among lending institutions 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 capital that enhances cash flow for businesses selling to larger buyers. According to the WTO, this financial tool can alleviate working-capital challenges that often prevent smaller suppliers from entering export markets. However, access remains restricted in many low-income and vulnerable economies. Recent shifts in global trade dynamics and economic conditions have intensified these challenges over the past few years.
WTO and IFC emphasize the need for enhanced collaboration
The roundtable featured WTO Director-General Ngozi Okonjo-Iweala, who joined leaders from development banks and international organizations. She highlighted that small firms require financing to capitalize on trade opportunities and to boost economic development. Okonjo-Iweala also pointed out that closer cooperation among multilateral institutions could help bridge existing funding gaps. Co-chairing the session with her was IFC Managing Director Makhtar Diop. He described supply chain finance as a potentially transformative force for emerging markets when capital, legal frameworks, and digital platforms align effectively.
Diop emphasized that development banks should focus on improving conditions for financing, not just supplying capital. He noted that stronger regulation and well-functioning markets could attract private investors to smaller firms. Additionally, development banks have the capacity to deploy capital directly into smaller businesses and markets lacking sufficient financing. Discussions also covered strategies for increasing private-sector involvement in supply chain finance markets, as well as practical steps to expand access in underserved regions. The roundtable also examined ways to enhance the resilience of smaller suppliers within global commerce.
Focus on local currency funding and innovative financial products
Among the topics discussed were initiatives for local currency financing, product innovation, strategic partnerships, capacity-building, and raising awareness of financial options. 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, strengthened legal and regulatory frameworks, and improved market infrastructure and institutional capacity. The variety of financial products accessible to smaller firms has also increased.
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. 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 maintain coordination efforts, with the next phase focusing on reaching underserved businesses and attracting additional private investment.