BANGKOK, Thailand / RankWire.AI / – According to data revealed in Bangkok, direct funding from multilateral development banks has risen to approximately US$65 billion in 2026. This figure compares with roughly $35 billion annually prior to the COVID-19 pandemic. The surge primarily benefits low and middle-income nations. Notably, around $10 billion of this total is allocated to supply chain finance for developing economies, representing two to three times the level observed in 2024.
These statistics were announced on October 16 during a high-level roundtable held in Thailand’s capital. The gathering took place alongside the 2026 World Bank and International Monetary Fund Annual Meetings, hosted in Bangkok from October 12 to 18. The session was co-organized by the World Trade Organization and the International Finance Corporation. Participants examined the progress made in expanding supply chain finance across developing markets and outlined priorities for future collaboration among lenders and global institutions.
Supply chain finance plays a crucial role in enabling small and medium-sized enterprises to engage in international trade. It offers affordable funding solutions that bolster the cash flow of companies selling to larger buyers. As stated by the WTO, this financial tool can ease working-capital pressures that often exclude smaller suppliers from export markets. Nevertheless, access remains restricted in numerous low-income and vulnerable economies. Recent shifts in global trade patterns and economic conditions have intensified these challenges over recent years.
WTO and IFC advocate for enhanced partnership
WTO Director-General Ngozi Okonjo-Iweala participated in the roundtable alongside leaders of development banks and international organizations. She emphasized that small firms require financing to capitalize on trade opportunities and support economic development. Additionally, she highlighted that increased cooperation among multilateral bodies can help address funding gaps. Co-chairing the discussion, IFC Managing Director Makhtar Diop described supply chain finance as potentially transformative for emerging markets when capital, legal frameworks, and digital platforms are aligned.
Diop pointed out that development banks should focus on improving financing conditions rather than merely providing capital. He argued that stronger regulation and well-functioning markets could attract private investors to smaller companies. Furthermore, development banks can directly invest in smaller firms and markets lacking adequate financing. The roundtable also considered strategies to mobilize more private-sector involvement in supply chain finance. Participants explored practical steps to expand access in underserved regions and discussed measures to enhance the resilience of smaller suppliers within global commerce.
Focus on local currency funding and innovative financial products
Among the initiatives discussed were local currency financing, product innovation, forming new partnerships, capacity-building efforts, and raising awareness of available financial solutions. A joint statement issued in 2024 committed to broadening supply chain trade in emerging markets. Since then, financial institutions have expanded their programs, strengthened legal and regulatory frameworks, improved market infrastructure, and enhanced 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. 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 maintain coordinated efforts, with the next phase emphasizing reaching underserved businesses and encouraging greater private sector investment.