Empowering small businesses: WTO, IFC, and multilateral banks review supply chain finance progress

World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala and International Finance Corporation (IFC) Managing Director Makhtar Diop co-chaired a high-level roundtable in Bangkok on 16 October. They discussed the progress of the Supply Chain Finance Initiative.

During the 2026 World Bank– International Monetary Fund (IMF) Annual Meetings, leaders from major multilateral development banks came together for this session. They noted an increase in trade funding and set goals to encourage more private sector involvement in emerging markets.

Participants reviewed progress since the 2024 joint statement on Boosting Supply Chain Trade in Emerging Markets. They talked about how the current global trade and economic environment impacts access to supply chain finance, especially for small and medium-sized enterprises (SMEs) in low-income and vulnerable economies.

Importance of supply chain finance for global trade

Opening the meeting, DG Okonjo-Iweala highlighted the critical role of supply chain finance in helping firms participate in international trade and integrate into regional and global value chains.

She said, “Expanding access to supply chain finance is essential to ensuring that smaller businesses can seize trade opportunities and contribute to economic growth. By working together, multilateral institutions can help address persistent financing gaps and support more inclusive participation in global trade.”

Makhtar Diop said, “Supply chain finance can have a transformative impact on trade flows and emerging market economies when the right elements come together: capital, legal infrastructure, digital platforms, and the market capacity to put it to work. Together, multilateral development banks (MDBs) are uniquely positioned to strengthen regulatory and market conditions and leverage our own capital to mobilise private investment at scale, channelling it to smaller businesses and markets where access to finance remains out of reach.”

Progress since 2024

Participants reviewed work undertaken since 2024 to help SMEs overcome barriers in obtaining trade-related financing.

These included expanding supply chain finance programs, enhancing legal and regulatory frameworks, promoting market infrastructure, building institutional capacity, and increasing the variety of financing products for businesses.

Supply chain finance supports SME participation in trade by providing affordable financing that improves firms’ cash flow. Direct financing provided by multilateral development banks has grown from approximately USD 35 billion annually before the COVID-19 pandemic to about USD 65 billion in 2026, benefiting both low- and middle-income countries. Of this amount, USD 10 billion corresponds to supply chain finance in developing economies, representing a two-to-threefold increase from 2024.

The roundtable also explored ways to mobilise greater private-sector participation and investment in supply chain finance markets. Participants discussed practical measures for broadening access to underserved markets and improving SMEs’ resilience in supply chains, including local currency financing for product innovation, partnerships, capacity-building, and financial product awareness.

Commitment to enhanced cooperation

Participants reaffirmed their commitment to enhancing cooperation through the existing Supply Chain Finance Task Force under the WTO’s Multilateral Development Banks Working Group.

The Task Force coordinates action across multilateral development banks, including the International Finance Corporation (World Bank Group), the European Bank for Reconstruction and Development (EBRD), the Asian Development Bank, the African Development Bank, Afreximbank, the Inter-American Development Bank, and the Islamic Trade Finance Corporation (Islamic Development Bank Group).

Multilateral development banks coordinate with the WTO Secretariat and with private sector institutions, such as the International Chamber of Commerce and FCI, the global representative body for the factoring and receivables finance industry.

The Working Group agreed at the roundtable to continue coordinating efforts aimed at expanding financing opportunities in developing economies.

The roundtable brought together senior representatives from multilateral development banks and international organisations participating in the supply chain finance initiative, demonstrating a strong commitment to supporting SMEs and fostering more inclusive global trade participation.