WTO, partners advance supply chain finance push for developing economies

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WTO supply chain finance push

Highlights

WTO and IFC-led roundtable in Bangkok on 16 October sets new priorities for expanding supply chain finance access for SMEs in developing economies.
Direct financing from multilateral development banks is projected to rise from USD 35 billion pre-COVID to USD 65 billion in 2026, with USD 10 billion earmarked for supply chain finance in developing markets.
Measures discussed include increased private investment, local-currency financing, product innovation, and expanded capacity-building to strengthen SME participation in global supply chains.

Bangkok meeting reviews next phase

As reported by the World Trade Organization, WTO Director-General Ngozi Okonjo-Iweala joins leaders of multilateral development banks and other international organizations at a high-level roundtable in Bangkok on 16 October to assess progress on a supply chain finance initiative and set priorities for the next stage of cooperation.

The discussion, organized jointly by the WTO and the International Finance Corporation during the 2026 World Bank-IMF Annual Meetings, builds on commitments made in the 2024 joint statement on boosting supply chain trade in emerging markets. Participants examine how the current global trade and economic environment is affecting access to supply chain finance, particularly for SMEs in low-income and vulnerable economies.

Okonjo-Iweala says broader access to supply chain finance is critical for helping smaller firms capture trade opportunities and support economic growth. IFC Managing Director and Executive Vice President Makhtar Diop says multilateral development banks can improve regulatory and market conditions, deploy their own capital and help mobilize private investment for smaller businesses and underserved markets at scale.

Financing growth and market impact

Participants review work since 2024 to address barriers to trade-related financing for SMEs, including expanding programmes, strengthening legal and regulatory frameworks, promoting market infrastructure, building institutional capacity and widening the range of financing products available to businesses.

Direct financing from multilateral development banks rises from about USD 35 billion annually before COVID-19 to about USD 65 billion in 2026, benefiting both low and middle-income countries. Of that total, USD 10 billion is tied to supply chain finance in developing economies, representing a two-to-threefold increase from 2024.

The roundtable also explores ways to attract greater private-sector participation and investment in supply chain finance markets. Measures under discussion include local-currency financing, product innovation, partnerships, capacity-building and improving awareness of financial products to strengthen SME resilience in supply chains.

Participants reaffirm cooperation through the existing Supply Chain Finance Task Force under the WTO's Multilateral Development Banks Working Group. The group says it will continue coordinating efforts to expand financing opportunities in developing economies, with participation from institutions including IFC, EBRD, the Asian Development Bank, the African Development Bank, Afreximbank, the Inter-American Development Bank and the Islamic Trade Finance Corporation.

In our earlier article on the WTO’s view of lasting trade impacts from the Ukraine and Middle East wars, we noted that repeated disruptions are prompting companies to reconfigure supply chains and shipping routes in ways that could persist even after conflicts ease. The piece also highlighted the WTO’s expectations for weaker Middle East trade flows alongside an upgraded 2026 global merchandise trade growth outlook, while stressing ongoing uncertainty from geopolitics and tariffs.

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