BANGKOK, Thailand / RankWire.AI / – Multilateral development banks have increased their direct financing to approximately US$65 billion in 2026, as announced during an event in Bangkok. This figure marks a significant rise from roughly $35 billion prior to the COVID-19 pandemic. Low and middle-income nations are notably gaining from this surge. Of the total, about $10 billion is allocated to supply chain finance aimed at developing economies. This portion is two to three times higher than the level observed in 2024.
The data was shared on October 16 during a high-level roundtable held in Thailand’s capital city. This session took place alongside the 2026 World Bank and International Monetary Fund Annual Meetings, hosted in Bangkok from October 12 to 18. The event was organized jointly by the World Trade Organization and the International Finance Corporation. Attendees discussed advancements in expanding supply chain finance throughout emerging markets and outlined priorities for future collaboration among lenders and global organizations.
Supply chain finance plays a critical role in enabling small and medium-sized enterprises to participate in international trade. It offers affordable funding options that help improve cash flow for firms selling to larger buyers. According to the WTO, this tool can alleviate working-capital challenges that often prevent smaller suppliers from entering export markets. Nonetheless, access remains limited in many low-income and vulnerable economies. Recent shifts in global trade patterns and economic conditions have intensified these pressures over recent years.
WTO and IFC Advocate for Enhanced Collaboration
WTO Director-General Ngozi Okonjo-Iweala participated in the roundtable alongside leaders from development banks and international organizations. She emphasized the importance of financing for smaller firms to seize trade opportunities and foster economic growth. She further highlighted that strengthened cooperation among multilateral institutions could help bridge funding gaps. IFC Managing Director Makhtar Diop co-led the discussion, describing supply chain finance as a potentially transformative force for emerging markets when capital, legal frameworks, and digital platforms align effectively.
Diop noted that development banks should focus on improving conditions for financing rather than merely supplying capital. He emphasized that robust regulation and functional markets can attract private investors to smaller firms. Additionally, development banks can directly invest in smaller enterprises and markets lacking sufficient financing. The roundtable also examined strategies to mobilize greater private sector engagement in supply chain finance markets, alongside discussions on practical steps to improve access in underserved regions. They explored ways to bolster the resilience of smaller suppliers within global commerce.
Focus on Local Currency Financing and Innovative Solutions
Discussions included expanding local currency financing, developing new financial products, fostering partnerships, enhancing capacity, and increasing awareness of existing financial tools. In a joint statement issued in 2024, partners committed to boosting supply chain trade in emerging markets. Since then, lenders have expanded financing programs, strengthened legal and regulatory frameworks, improved market infrastructure, and built institutional capacity. The variety of financial products available to smaller firms has also grown.
Participants reaffirmed their support for the WTO’s Supply Chain Finance Task Force, which operates within the Multilateral Development Banks Working Group. The 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, with the next phase focusing on reaching underserved businesses and attracting more private investment in supply chain finance markets.