Multilateral Banks Double Supply Chain Finance for Developing Economies

Multilateral development banks have reported a major increase in financing to support small businesses in developing economies. Direct financing by these banks grew from about $35 billion annually before the COVID-19 pandemic to approximately $65 billion in 2026, with $10 billion specifically allocated to supply chain finance in developing economies.

A roundtable organized jointly by the World Trade Organization and the International Finance Corporation assessed this progress. The meeting, opened by WTO Director-General Ngozi Okonjo-Iweala and co-chaired by IFC Managing Director Makhtar Diop, reviewed developments since a 2024 joint statement on boosting supply chain trade in emerging markets. Participants examined how the current global economic environment affects access to this critical financing.

Growth in financing and focus on SMEs in vulnerable economies

The $10 billion dedicated to supply chain finance in developing economies represents a two-to-threefold increase from 2024 levels. This growth has benefited both low and middle-income countries, with a particular focus on small and medium-sized enterprises in low-income and vulnerable economies.

Access to affordable financing remains a significant barrier for many firms in these regions. Supply chain finance helps businesses manage cash flow through affordable funding, which supports their participation in regional and global value chains. For smaller firms, this access can make the difference in pursuing tangible trade opportunities.

Measures discussed to deepen impact and expand access

Work since the 2024 statement has included expanding financing programmes, improving legal and regulatory frameworks, developing market infrastructure, strengthening institutional capacity, and widening the range of financial products available to businesses. Participants discussed practical measures for broadening access to underserved markets.

These measures included local currency financing for product innovation, capacity-building, and greater awareness of available financial products. The roundtable explored ways to mobilize greater private-sector participation and investment in supply chain finance markets. Better regulations and functioning markets can help attract private investors into smaller firms and underserved economies. Expanding funding volume is only part of the task; businesses also need products they understand and can use.

Task force reaffirms coordination and outlines next steps

Participants reaffirmed their commitment to enhancing cooperation through the existing Supply Chain Finance Task Force under the WTO's Multilateral Development Banks Working Group. This task force coordinates action across multilateral development banks and includes institutions such as the IFC, the European Bank for Reconstruction and Development, the Asian Development Bank, the African Development Bank, Afreximbank, the Inter-American Development Bank, and the International Islamic Trade Finance Corporation.

The banks also work with the WTO Secretariat and private-sector institutions, including the International Chamber of Commerce and FCI. Closer cooperation among these multilateral institutions is seen as vital for closing persistent funding gaps and making participation in global trade more inclusive.

Makhtar Diop placed responsibility on development banks to strengthen conditions for financing to reach businesses and to provide capital themselves. The next phase will focus on reaching underserved businesses, attracting more private investment, and strengthening the systems that allow supply chain finance to support trade.