BANGKOK, Thailand / RankWire.AI / – In 2026, about US$10 billion in supply chain financing will be supplied by multilateral development banks to emerging economies, according to the World Trade Organization. This represents a doubling to tripling increase compared to 2024 figures. The total direct financing for this year is approximately $65 billion, a significant rise from roughly $35 billion annually before the COVID-19 pandemic. Both low- and middle-income nations are beneficiaries of this funding surge.
The information was shared during a roundtable convened in Bangkok on October 16, coinciding with the 2026 Annual Meetings of the World Trade Organization and the International Monetary Fund, held in Thailand from October 12 to 18. The event was co-organized by the WTO and the International Finance Corporation. Attendees examined advances in expanding supply chain finance within developing countries and outlined priorities for future cooperation stages.
Supply chain finance facilitates small and medium-sized enterprises by providing affordable funding based on their sales to larger customers. This approach enhances liquidity and enables smaller suppliers to participate more actively in cross-border global trade. The WTO highlighted that such financing alleviates working capital constraints, though many firms in low-income and vulnerable economies still face difficulties accessing it. Changes in international trade patterns and economic conditions have further complicated access for some businesses.
Leaders of development banks endorse unified strategy
WTO Director-General Ngozi Okonjo-Iweala participated alongside leaders from development banks and international organizations. She emphasized that small businesses require better access to finance to leverage trade opportunities and foster growth. She also stressed that enhanced coordination among multilateral institutions could help close existing financing gaps. Makhtar Diop, Managing Director of the IFC, co-chaired the roundtable. He expressed that when capital, legal frameworks, digital platforms, and market capacity align, supply chain finance can lead to transformative change in emerging markets.
Diop pointed out that development banks should do more than just supply capital. He noted they can attract private investors by bolstering regulations and fostering efficient markets. Moreover, they can allocate capital to smaller firms and regions where financing options remain limited. The discussion also focused on strategies to attract more private-sector investments into supply chain finance, aiming to expand access in underserved markets and support smaller firms and exporters during supply chain disruptions.
Next steps outlined by dedicated working group
Discussions included promoting local currency financing for product innovation, building partnerships, and enhancing capacity. Raising awareness about available financial products was also a key focus. A joint statement in 2024 committed partners to increasing supply chain trade in emerging markets. Since then, efforts have expanded financing programs, strengthened legal and regulatory frameworks, and improved market infrastructure. Financial institutions have also enhanced institutional capacity and diversified their product offerings.
Participants reaffirmed their commitment to work through the WTO’s Supply Chain Finance Task Force, which operates under the Multilateral Development Banks Working Group. Members include the IFC, the Inter-American Development Bank, the African Development Bank, Afreximbank, and the International Islamic Trade Finance Corporation. The Working Group plans to continue collaborating with the WTO Secretariat, the International Chamber of Commerce, and FCI, the global association for factoring and receivables finance. Their upcoming focus will be on reaching underserved businesses, promoting private sector investment, and strengthening supply chain finance systems.