BANGKOK, Thailand / RankWire.AI / – Multilateral development banks have increased their direct funding to approximately US$65 billion in 2026, as announced during an event in Bangkok. This figure significantly surpasses the roughly $35 billion disbursed annually before the outbreak of the COVID-19 pandemic. The rise is particularly advantageous for low and middle-income nations. Notably, around $10 billion of the total funding is directed toward supply chain finance aimed at developing economies, representing two to three times the volume recorded in 2024.
These statistics were shared on October 16 at a high-level roundtable held in Thailand’s capital city. The gathering coincided with the 2026 Annual Meetings of the World Bank and the International Monetary Fund, which took place in Bangkok from October 12 to 18. The session was jointly organized by the World Trade Organization and the International Finance Corporation. Attendees examined the progress made in expanding supply chain finance across developing countries and discussed future cooperation priorities among lenders 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 credit options that help improve cash flows for firms selling to larger buyers. According to the WTO, this financial tool can alleviate working-capital difficulties that often prevent smaller suppliers from accessing export markets. Nevertheless, in many low-income and vulnerable economies, access remains limited, and recent shifts in global trade dynamics and economic conditions have intensified these challenges.
WTO and IFC Emphasize Enhanced Collaboration
WTO Director-General Ngozi Okonjo-Iweala participated in the roundtable alongside leaders from development banks and international organizations. She highlighted that small firms require adequate financing to capitalize on trade opportunities and foster economic development. She also emphasized that fostering closer cooperation among multilateral institutions could help bridge funding gaps. Co-chairing the discussion was IFC Managing Director Makhtar Diop, who described supply chain finance as a potentially game-changing approach for emerging markets, particularly when capital, legal frameworks, and digital infrastructure are aligned.
Diop noted that development banks should focus on enhancing the conditions for access to finance instead of merely supplying capital. Stronger regulatory environments and functional markets are essential for attracting private investors to smaller firms. Additionally, development banks can directly deploy capital into smaller enterprises and markets lacking sufficient financing. The roundtable also explored strategies to mobilize more private-sector involvement in supply chain finance markets, with discussions centered on practical measures to improve access in underserved regions and to bolster the resilience of smaller suppliers within global commerce.
Focus on Local Currency Financing and Innovative Products
Among the topics covered were the promotion of local currency financing, the development of new financial products, strategic partnerships, capacity-building initiatives, and increasing awareness of available financial tools. A joint statement issued in 2024 committed partners to expanding supply chain trade in emerging markets. Since then, lenders have broadened their financing programs, enhanced legal and regulatory frameworks, improved market infrastructure, and strengthened institutional capacities. The diversity 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 Multilateral Development Banks Working Group. This group includes organizations such as the IFC, the Asian Development Bank, the African Development Bank, Afreximbank, and the European Bank for Reconstruction and Development. The Working Group agreed to continue coordinating efforts, with a focus in the upcoming phase on reaching underserved businesses and attracting increased private investment into supply chain finance initiatives.