BANGKOK, Thailand / RankWire.AI / – According to data unveiled in Bangkok, direct financing from multilateral development banks has surged to approximately US$65 billion in 2026. This figure is nearly double the roughly $35 billion recorded annually before the onset of the COVID-19 pandemic. Countries classified as low and middle-income are reaping significant benefits from this increase. Notably, around $10 billion of the total is allocated to supply chain finance targeting developing economies. This portion is two to three times higher than the level documented in 2024.
The presentation of these figures occurred on October 16 during a high-level roundtable held in Thailand’s capital city. The event took place alongside the 2026 World Bank and International Monetary Fund Annual Meetings, which were held in Bangkok from October 12 to 18. The session was organized jointly by the International Finance Corporation and the World Trade Organization. Attendees evaluated advancements in expanding supply chain finance across emerging markets and deliberated on strategic 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 capital, enhancing the cash flow of firms that supply larger buyers. The WTO has indicated that this financial tool can alleviate working-capital pressures that often prevent smaller suppliers from accessing export markets. However, in many low-income and vulnerable economies, access to such financing remains limited. Recent shifts in global trade patterns and economic conditions have intensified these challenges over the past few years.
Advocates for Enhanced Collaboration between WTO and IFC
At the roundtable, WTO Director-General Ngozi Okonjo-Iweala emphasized the importance of financing for smaller firms to capitalize on trade opportunities and foster economic expansion. She highlighted that increased cooperation among multilateral institutions can help address existing funding gaps. Co-chairing the session with her was IFC Managing Director Makhtar Diop, who described supply chain finance as a potentially transformative force for emerging markets when capital, legal frameworks, and digital platforms are effectively integrated.
Diop underscored that development banks should focus on improving conditions for financing rather than merely supplying capital. He noted that strengthened regulations and well-functioning markets are key to attracting private investors to smaller firms. Furthermore, development banks can directly inject capital into smaller companies and markets that lack sufficient financing. The roundtable also explored strategies to mobilize increased private-sector involvement in supply chain finance markets. Participants discussed practical approaches to expand access in underserved regions and enhance 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 financial products, forming strategic partnerships, capacity-building, and raising awareness about available financial solutions. A joint statement in 2024 committed partners to expanding supply chain trade in emerging markets. Since then, financial institutions 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 expanded.
The 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, Asian Development Bank, African Development Bank, Afreximbank, and the European Bank for Reconstruction and Development. The Working Group agreed to continue coordinating efforts. The next phase aims to reach more underserved businesses and draw greater private investment into supply chain finance markets.