BANGKOK, Thailand / RankWire.AI / – According to the World Trade Organization, multilateral development banks are expected to supply approximately US$10 billion in supply chain finance to emerging markets in 2026. This represents a two- to threefold rise compared to 2024 and is part of the approximately $65 billion in direct financing allocated this year. Prior to the COVID-19 outbreak, annual direct financing was around $35 billion. Both low- and middle-income nations are benefitting from these funds.
The figures were shared during a roundtable in Bangkok on October 16, which coincided with the 2026 Annual Meetings of the World Bank Group and the International Monetary Fund, held from October 12 to 18. Co-organized by the WTO and the International Finance Corporation, the event evaluated progress in expanding supply chain finance in developing economies and outlined future cooperation priorities.
Supply chain finance provides small and medium-sized enterprises with affordable funding tied to their sales to larger buyers. This facilitates improved cash flow and helps smaller suppliers integrate into global trade. The WTO highlighted that such financing can ease working capital pressures, though many firms in vulnerable and low-income economies still face difficulties accessing it, especially given recent trade pattern shifts and economic challenges.
Development banking leaders endorse collaborative strategy
WTO Director-General Ngozi Okonjo-Iweala participated alongside leaders from development banks and international bodies, emphasizing that small businesses need financing to maximize trade and foster growth. She noted that enhanced coordination among multilateral institutions could help close existing financing gaps. Makhtar Diop, Managing Director of the IFC, co-chaired the roundtable and stated that when capital, legal frameworks, digital tools, and market capacity align, supply chain finance can significantly boost emerging markets.
Diop argued that development banks must contribute beyond capital provision by attracting private investors through better regulation and market support. He stressed their role in channeling funds to smaller firms and underserved markets. Discussions focused on ways to increase private-sector involvement, expand access to underserved markets, and support exporters in overcoming supply chain disruptions.
Next steps outlined by dedicated working group
The agenda included local currency financing, partnerships, capacity-building, and efforts to raise awareness of financial products. Since a 2024 joint statement committing to bolster supply chain trade in emerging markets, activities have included expanding financing initiatives, enhancing legal and regulatory environments, developing market infrastructure, strengthening institutions, and diversifying product offerings.
Participants reaffirmed their commitment to the WTO’s Supply Chain Finance Task Force, part of the Multilateral Development Banks Working Group. This group includes 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 working with the WTO Secretariat, the International Chamber of Commerce, and FCI, the global factoring and receivables finance organization. Its future focus will be on supporting underserved businesses, attracting private investment, and building resilient supply chain finance systems.