Target Audience
- Readers interested in international development, foreign aid, and philanthropy who want to understand how major private foundations operate.
- Professionals and researchers interested in Africa's economic development, youth employment, education, and financial inclusion.
- Readers seeking to understand the origins, operating models, and social impact evaluation approaches of corporate-founded philanthropic foundations.
Summary
- The Mastercard Foundation is an independent philanthropic foundation established in 2006 following Mastercard's initial public offering (IPO). Its assets reached approximately US$53 billion by the end of 2025.
- Initially focused on education and financial inclusion, the Foundation launched Young Africa Works in 2018, establishing a goal of enabling 30 million young Africans to access dignified and fulfilling work by 2030.
- Its approach integrates education, vocational training, financial access, industry development, and job creation, seeking to transform not only individual opportunities but also local economies and institutions.
- Key challenges include women's economic participation, structural weaknesses in African labor markets, investment concentration risk, and balancing locally led development with large-scale program implementation.
- With a new CEO taking office in 2026, the Foundation faces an important test: demonstrating not merely the number of people reached, but the quality and long-term sustainability of the economic opportunities it helps create.
1. What Is the Mastercard Foundation?
The Mastercard Foundation is one of the world's largest independent philanthropic foundations, established in 2006 in connection with the initial public offering of Mastercard, the global payments company.[1]
Initially, the Foundation focused on improving access to financial services and expanding educational opportunities for people living in poverty. Over time, it evolved into a major development organization dedicated to promoting employment and economic independence among young people in Africa.
Today, rather than simply providing scholarships or charitable grants, the Foundation emphasizes building socioeconomic systems that connect education, finance, industry, and employment, enabling young people to earn sustainable livelihoods.[2]
1-1. Mastercard Foundation at a Glance
| Category | Details |
|---|---|
| Name | Mastercard Foundation |
| Established | 2006 |
| Origin | Mastercard's initial public offering (IPO) |
| Legal status | Registered Canadian charity |
| Relationship with Mastercard | Independent foundation with its own board and management |
| Total assets at the end of 2025 | Approximately US$53 billion |
| Cumulative funding commitments since inception | Approximately US$13.7 billion |
| Countries supported since inception | 74 |
| Primary geographic focus | Africa and Indigenous communities in Canada |
| 2030 goal in Africa | Enable 30 million young people to access dignified and fulfilling work |
| 2030 goal in Canada | Support 100,000 Indigenous young people in transitioning to postsecondary education and livelihoods |
By the end of 2025, the Foundation's assets had reached approximately US$53 billion, while its cumulative funding commitments since inception amounted to approximately US$13.7 billion.[3][4]
It is important to distinguish between total assets, funding commitments, and actual expenditures. These are different financial indicators, and each provides a different perspective on the Foundation's scale and activities.
1-2. Five Key Characteristics
The Mastercard Foundation can be understood through five defining characteristics.
-
It was established by a corporation but is not a corporate social responsibility department. The Foundation operates independently from Mastercard Incorporated, with its own board, management, and funding decisions.
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Its substantial financial assets enable long-term, large-scale interventions. However, the historical concentration of its assets in Mastercard shares has also created significant investment management risks.
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It underwent a major strategic transformation in 2018. Education and financial inclusion became central instruments in a broader effort to help 30 million young Africans access employment opportunities by 2030.
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It emphasizes local leadership and systemic reform. The Foundation works with African governments, businesses, universities, and nongovernmental organizations to improve the systems that generate employment.
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It is entering a critical period of impact verification. Beyond counting beneficiaries, the Foundation must demonstrate whether its programs generate stable incomes, improve job quality, advance women's economic participation, and produce sustainable outcomes beyond the duration of individual projects.[2][5]
2. History: From Establishment to the Present
The history of the Mastercard Foundation illustrates how an organization initially focused on education and financial inclusion evolved into one seeking to transform economic systems across Africa.
2-1. 2006: Establishment Following Mastercard's IPO
The Mastercard Foundation was established in 2006 when Mastercard went public.
Its initial endowment consisted of approximately US$40 million in cash and Mastercard shares valued at approximately US$500 million at the time.[1][6]
The important feature of this arrangement was that the Foundation received a substantial long-term financial asset in the form of company shares, rather than relying primarily on annual donations from Mastercard's profits.
As Mastercard's share price increased over the following years, the value of the Foundation's assets grew substantially.
This investment structure became one of the principal reasons the Mastercard Foundation developed into one of the world's largest philanthropic foundations.
2-2. Around 2008–2011: Building a Foundation in Financial Inclusion and Education
During its early years, the Foundation concentrated on microfinance, support for small businesses, and expanding educational opportunities for economically disadvantaged populations.
Its activities included improving access to financial services in rural communities, strengthening agricultural businesses, and supporting entrepreneurship.
The central development challenge during this period was the limited access to financial services and education, which constrained individuals' ability to improve their economic circumstances.
2-3. 2012: Launch of the Scholars Program
In 2012, the Mastercard Foundation launched the Mastercard Foundation Scholars Program.[1]
The program was designed to enable talented young people facing financial barriers to access higher education and leadership development opportunities.
Through long-term partnerships with universities, it provides support that extends beyond tuition assistance to include personal development and career preparation after graduation.
Over time, the Scholars Program became one of the Foundation's flagship educational initiatives.
2-4. 2018: Strategic Transformation Through Young Africa Works
The year 2018 marked a major turning point in the Foundation's history.
The Mastercard Foundation launched Young Africa Works, setting a goal of enabling 30 million young Africans to access dignified and fulfilling work by 2030.[2]
It also established a target for young women to account for 70% of those reached.
The significance of this transformation was the shift from improving access to education and financial services as primary objectives toward making employment and livelihood improvement central to the Foundation's overall strategy.
2-5. 2020–2022: Crisis Response and Expansion of Program Areas
The COVID-19 pandemic severely disrupted education and employment across Africa.
The Mastercard Foundation responded to these challenges while expanding its activities into additional areas, including public health collaboration with the Africa Centres for Disease Control and Prevention (Africa CDC), financing for women entrepreneurs, and the inclusion of refugees and persons with disabilities.[7]
This expansion reflected the recognition that education and employment outcomes are closely connected to public health, social protection, financial systems, and other structural conditions.
2-6. 2023–2024: Diversification of Investment Management
For many years, Mastercard shares represented the primary financial asset supporting the Foundation.
However, concentrating assets in a single company's stock creates risks associated with share-price volatility and financial management.
In 2023, discussions with Mastercard progressed regarding the diversification of the Foundation's investment holdings.[6]
In 2024, Mastercard Foundation Asset Management (MFAM) was established as a separate investment management organization.[8]
This represented an important initiative to strengthen the long-term financial stability of the Foundation's philanthropic activities.
2-7. 2026: Appointment of a New CEO
On January 1, 2026, Sewit Ahderom became CEO of the Mastercard Foundation.[9]
Her predecessor, Reeta Roy, had led the Foundation for 18 years, overseeing the expansion of its operations and its strategic shift toward Africa.
Ahderom brings experience in technology, African investment, agricultural data, and AI-enabled businesses.
Under the new leadership, the Foundation is continuing to implement its strategy and evaluate progress toward its 2030 goals.
3. Organizational Characteristics of the Mastercard Foundation
3-1. Independence from Mastercard Incorporated
Although the Foundation carries the Mastercard name, it is neither a subsidiary of Mastercard Incorporated nor a conventional corporate social responsibility department.
| Category | Mastercard Incorporated | Mastercard Foundation |
|---|---|---|
| Organizational form | For-profit corporation | Registered Canadian charity |
| Primary purpose | Payment services and financial technology | Education, financial inclusion, and economic opportunities |
| Governance | Corporate management and board of directors | Independent board and management |
| Financial resources | Commercial revenue | Donated shares and investment assets |
| Decision-making | Corporate business strategy | Independent charitable mission and strategy |
| Geographic scope | Global | Primarily Africa and Indigenous communities in Canada |
However, institutional independence does not mean that all financial and historical connections with Mastercard have disappeared.
The Foundation has held Mastercard shares for many years, and discussions concerning investment diversification took place with Mastercard in 2023.[6]
3-2. A Focus on Systemic Change Rather Than Conventional Grantmaking Alone
The Mastercard Foundation recognizes that building schools or providing scholarships alone is insufficient to achieve long-term economic independence for young people.
Instead, it adopts an integrated approach linking education, finance, employment, and access to markets.
Its underlying model can be summarized in five stages.
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Improving education and vocational skills. Universities, vocational training institutions, and digital learning programs help young people develop their capabilities.
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Expanding access to finance. Loans, entrepreneurship support, and financial services help individuals and enterprises obtain the resources they need.
-
Connecting people to markets and employment opportunities. Partnerships with businesses, customers, and employers help translate acquired skills into economic opportunities.
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Enabling dignified and fulfilling work. The goal extends beyond stable income to include social recognition, opportunities for growth, and a sense of purpose.
-
Supporting sustainable improvements in local economies and institutions. These improvements can contribute to poverty reduction, business growth, and future job creation.
In its 2026 reflection on seven years of Young Africa Works implementation, the Foundation acknowledged that vocational training, financing, or entrepreneurship support delivered in isolation often fails to produce sustainable results.[5]
Its analysis indicates that integrated programs combining market access, technical assistance, and financing tend to generate better outcomes.
3-3. Financial Capacity for Long-Term, Large-Scale Support
One of the Foundation's most distinctive characteristics is the scale of its financial assets.
| Period | Approximate Asset Value |
|---|---|
| 2006, at establishment | US$540 million |
| June 2023 | US$37 billion |
| End of 2024 | US$50.3 billion |
| End of 2025 | US$53 billion |
The 2006 figure represents the approximate combined value of the initial cash and share contributions. The 2023 figure is based on Mastercard's public disclosures, the 2024 figure on Form 990, and the 2025 figure on reporting citing the Foundation's financial statements.
These figures differ in reporting dates and valuation bases and should not be interpreted as a perfectly standardized financial time series.[3][4][6][10]
The Foundation's program expenditures in 2025 were reported at approximately US$1.89 billion.[4]
According to OECD data, its development finance contributions in 2023 totaled approximately US$1.3 billion, of which 92.5% was directed toward Africa.[11]
This financial capacity enables the Foundation to support long-term programs spanning multiple countries and large-scale interventions across education, finance, and industry.
3-4. An Emphasis on Locally Led Development
International development assistance has often followed a structure in which foundations and international NGOs based in Europe or North America control funding decisions, while African organizations are responsible primarily for implementation.
The Mastercard Foundation has sought to change this approach by enabling African organizations to take greater responsibility for program design and decision-making.
As of 2026, the Foundation reported maintaining local offices in seven African countries, operating across 47 countries through national and regional initiatives, and implementing more than 450 programs.[5]
It has also expanded direct collaboration with youth-led organizations.
This approach places greater emphasis on incorporating local knowledge and experience into program design rather than allowing funders alone to determine solutions.
4. Current Strategic Priorities and Major Programs
The Mastercard Foundation's overall strategy is organized around two major initiatives: Young Africa Works, focused on Africa, and EleV, focused on Indigenous communities in Canada.
4-1. Young Africa Works
Young Africa Works aims to enable 30 million young Africans to access dignified and fulfilling work by 2030.[2]
The Foundation has also set a target for young women to represent 70% of those reached.
The strategy is not limited to increasing the number of employment opportunities.
It also seeks to establish conditions that enable young people to become economically independent and contribute to the development of their communities.
4-2. EleV
EleV is an initiative focused on Indigenous youth in Canada.
Its goal is to support 100,000 young people in transitioning to postsecondary education and livelihoods by 2030.[12]
Although Africa accounts for the main share of the Foundation's activities, supporting Indigenous communities in Canada remains another important strategic pillar.
4-3. Priority Areas
The Mastercard Foundation operates across several interconnected areas, including education, finance, industry, and employment.
| Priority Area | Main Activities |
|---|---|
| Education and vocational training | Scholarships, higher education, vocational training, teacher development, and school-to-work transitions |
| Digital technology | Digital skills, EdTech, ICT workforce development, and technology-enabled entrepreneurship |
| Agriculture and food systems | Smallholder farmers, agribusinesses, agricultural supply chains, and youth employment in agriculture |
| Financial inclusion and entrepreneurship | SME financing, support for women entrepreneurs, and access to capital |
| Health and healthcare | Public health, workforce development, and vaccine manufacturing capacity in Africa |
| Refugees and displaced populations | Education, vocational training, employment support, and economic independence |
| Disability inclusion | Removing barriers to education and employment for young people with disabilities |
Rather than operating as entirely separate programs, these areas support the broader employment objectives of Young Africa Works.[4][7]
4-4. Representative Programs
Mastercard Foundation Scholars Program
The Mastercard Foundation Scholars Program supports access to university education, leadership development, community engagement, and career preparation after graduation.
As of 2026, the Foundation had committed to more than 58,000 scholarships, with a goal of supporting 100,000 scholars by 2030.[4]
Centre for Innovative Teaching and Learning
The Centre for Innovative Teaching and Learning works with African education technology companies and EdTech support organizations to improve access to education and the quality of learning.
Its activities focus on the application of digital technologies and the development of business models suited to local educational challenges.[4]
Africa Growth Fund / Fund for Resilience and Prosperity
The Africa Growth Fund and Fund for Resilience and Prosperity emphasize access to finance for small and medium-sized enterprises, including women-led businesses.
They also support agricultural value-chain development and the expansion of employment opportunities.
These initiatives connect conventional philanthropic assistance with the development of financial markets.[4][7]
4-5. Geographic Priorities
Young Africa Works implements country-level programs primarily in seven African countries.
| Country | Main Office City |
|---|---|
| Ghana | Accra |
| Kenya | Nairobi |
| Nigeria | Lagos |
| Uganda | Kampala |
| Ethiopia | Addis Ababa |
| Rwanda | Kigali |
| Senegal | Dakar |
The Senegal office also serves the wider West African Economic and Monetary Union (WAEMU) region.
In addition to country-level programs, the Foundation implements regional initiatives spanning multiple countries.[5]
5. Current Challenges Facing the Mastercard Foundation
The Mastercard Foundation has expanded its activities to become one of the world's largest philanthropic organizations.
However, its scale and ambitions also create significant challenges.
The following discussion distinguishes between challenges explicitly acknowledged by the Foundation and potential operational or strategic risks identified through an analysis of publicly available information.
5-1. Challenge 1: Achieving the Goal of 30 Million Young People by 2030
The Foundation's most important challenge is achieving the Young Africa Works target and demonstrating its results objectively.
According to its 2026 reflections, simply providing vocational training or access to financial services does not constitute a sufficient outcome.[5]
The Foundation's concept of "Dignified and Fulfilling Work" considers not only stable income but also social respect, pride in one's work, and a sense of purpose.
Therefore, evaluating success requires measuring the quality of employment, not merely the number of people who find work.
Four stages of outcome measurement are particularly important.
- The number of people reached by or participating in programs.
- The number of people who gain access to new jobs or income-generating opportunities.
- The number of people who obtain dignified and fulfilling work.
- The number of people whose employment and livelihood improvements are sustained over time.
These indicators do not necessarily represent the same number of people.
Program participation figures therefore cannot automatically be counted as the number of people who have achieved the Foundation's ultimate employment objective.
In its 2026 reporting, the Foundation described a large-scale impact evaluation involving interviews with more than 200,000 young people.[5]
However, the reviewed report on seven years of implementation and learning does not provide a definitive final assessment of progress toward the target of 30 million people.
Consequently, the available materials do not support a conclusive statement about precisely what percentage of the target had been substantively achieved as of 2026.
5-2. Challenge 2: Advancing Women's Economic Participation
Young Africa Works aims for young women to account for 70% of those reached.
However, the Foundation acknowledged in its 2026 learning report that achieving this target has been among its most difficult implementation challenges.[5]
Key barriers include:
- Difficulties accessing financing.
- Responsibilities related to household work, childcare, and caregiving.
- Restrictions on mobility.
- Social norms.
- Limited employment opportunities in certain communities.
The Foundation has also reported that reaching young women in rural areas may require more time and resources than programs targeting men in urban settings.
As a result, achieving gender balance in training participation alone is insufficient.
It is also necessary to address the institutional and social conditions that enable women to generate income consistently over time.
5-3. Challenge 3: Structural Weaknesses in African Labor Markets
Even when vocational training successfully develops human capital, young people may struggle to find stable employment if businesses are not growing sufficiently to create jobs.
Several structural challenges are particularly significant:
- Heavy reliance on informal economic activity.
- Limited access to finance for small and medium-sized enterprises.
- Weaknesses in agricultural markets and supply chains.
- Climate change impacts on agricultural incomes.
- Disruption of economic activity by conflict and displacement.
In its 2026 report, the Foundation acknowledged that the markets and institutions underpinning employment were more fragile than initially anticipated.[5]
These problems cannot be addressed through individual skills development alone.
They require broader interventions in industry development, employment policy, financial markets, and private investment.
5-4. Challenge 4: Investment Concentration Risk and Long-Term Financial Sustainability
The Mastercard shares that helped drive the Foundation's financial growth have also represented a major source of investment concentration risk.
According to Mastercard's 2023 disclosures, the Foundation had depended on Mastercard shares as a principal source of funding since its establishment, while the original donation agreements also included restrictions on share sales.[6]
Mastercard Foundation Asset Management (MFAM) was established in 2024 as part of the response to these issues.[8]
A key financial management challenge is to diversify investments while maintaining sufficient returns and liquidity to sustain philanthropic activities approaching US$2 billion annually.
However, a more detailed review of the Foundation's 2025 financial statements is required to establish its latest Mastercard shareholding ratio and the extent of progress in portfolio diversification.
5-5. Challenge 5: Balancing Local Leadership with Large-Scale Implementation
The Mastercard Foundation is increasingly directing support to African organizations and youth-led institutions.
However, rapidly scaling locally rooted programs may undermine their original strengths, including community trust, flexibility, and responsiveness to local needs.
The Foundation itself has emphasized that expanding program scale does not automatically produce greater effectiveness.[5]
A major operational challenge is therefore balancing:
- Greater decision-making authority for local organizations.
- Capacity building among implementation partners.
- Responsible grant management.
- Consistent measurement of program outcomes.
Achieving all of these objectives simultaneously becomes increasingly complex as program scale expands.
5-6. Challenge 6: Transition to a New Leadership Structure
In January 2026, Sewit Ahderom succeeded Reeta Roy as CEO of the Mastercard Foundation.[9]
Ahderom brings experience in African investment, agriculture and food systems, and AI-enabled data businesses.
The key question is how the new leadership will continue implementing the 2030 strategy while advancing impact measurement, investment diversification, and relationships with local partners.
The leadership transition itself should not be understood as a problem.
Rather, it represents an important organizational turning point during the implementation of a large-scale, long-term strategy.
6. Overview of Major Challenges and Future Priorities
The main challenges facing the Mastercard Foundation can be summarized as follows.
| Challenge | Current Situation | Key Issues to Monitor |
|---|---|---|
| 2030 employment target | Goal of enabling 30 million young people to access work | Verified outcomes, job quality, and progress toward the target |
| Women's economic participation | Target of 70% female participation | Childcare, mobility, and financial barriers |
| Labor markets | Weaknesses among SMEs and local markets | Business growth and creation of stable employment |
| Investment management | Historical concentration in Mastercard shares | Portfolio diversification and long-term funding capacity |
| Locally led development | Emphasis on African implementing organizations | Balancing local decision-making with program accountability |
| Leadership transition | New CEO appointed in 2026 | Strategic continuity, impact assessment, and implementation capacity |
These challenges are interconnected rather than independent.
For example, expanding vocational training will not necessarily create employment if local businesses lack sufficient access to capital.
Similarly, improving women's employment opportunities requires addressing not only education and financing but also social barriers, including caregiving responsibilities and restrictions on mobility.
The Foundation's future performance will therefore depend partly on how effectively it addresses these issues together rather than through isolated interventions.
7. Future Outlook for the Mastercard Foundation
7-1. Understanding the Foundation's Development in Three Phases
For analytical purposes, the Mastercard Foundation's history can be divided into three broad phases.
| Period | Phase | Main Characteristics |
|---|---|---|
| 2006–2017 | Phase 1: Poverty Reduction Through Education and Financial Inclusion | Focus on expanding individual opportunities |
| 2018–2025 | Phase 2: Socioeconomic Transformation Centered on Youth Employment | Young Africa Works, expansion of local offices, and large-scale partnerships |
| 2026–2030 | Phase 3: Impact Verification, Sustainability, and Quality of Scale | Greater emphasis on demonstrating social impact and strengthening the operating model under new leadership |
This three-phase framework is an analytical interpretation presented in this article, not an official classification established by the Foundation.
7-2. Three Areas Worth Monitoring
The Mastercard Foundation's defining characteristic is its effort to combine direct support for individuals with broader reforms to the markets and institutions that generate employment, supported by substantial financial resources.
However, setting a goal of supporting 30 million young people is not equivalent to demonstrating that the lives of 30 million people have improved sustainably.
Three areas deserve particular attention.
1. Verification of Social Impact
It is important to evaluate not only the number of training opportunities or loans provided, but also whether participants experience sustained improvements in income stability and job quality.
2. Independence and Sustainability of Local Economies
A critical question is whether local businesses and institutions can continue generating employment after the Foundation's financial support ends.
3. Replicability of Successful Models
Successful programs in one country or community must be evaluated to determine whether similar results can be achieved when they are introduced in other regions.
If the Foundation can demonstrate progress in these areas, its activities could offer a meaningful model for long-term economic development in Africa, extending beyond conventional philanthropic grantmaking.
8. Conclusion
The Mastercard Foundation was established in 2006 following Mastercard's initial public offering, creating a mechanism through which corporate-origin financial assets could be transformed into long-term investments in social development.
Over the following two decades, its approach evolved considerably.
What began primarily as support for individual opportunities through education and financial inclusion has developed into an effort to transform the businesses, financial markets, educational institutions, and local economies that generate employment for young people.
This transformation highlights an important distinction in international development:
Providing people with opportunities is not necessarily the same as enabling them to achieve lasting economic independence.
The Mastercard Foundation is attempting to address the structural challenges that lie between these two outcomes.
As of 2026, the Foundation is pursuing its 2030 goals under a new leadership structure.
Going forward, the most important measures of success will include not only the scale of its activities, but also the quality of employment, women's economic participation, the sustainability of local economies, and the objective verification of development outcomes.
The Mastercard Foundation therefore represents an important case study for understanding how far private philanthropy can contribute to long-term socioeconomic transformation.
References
[1] Mastercard Foundation, “Foundation History,” Mastercard Foundation. https://mastercardfdn.org/en/about-us/foundation-history/
[2] Mastercard Foundation, “The Young Africa Works Strategy,” Mastercard Foundation. https://mastercardfdn.org/en/the-young-africa-works-strategy/
[3] Mastercard Foundation, “Our Financials,” Mastercard Foundation. https://mastercardfdn.org/en/our-financials/
[4] Inside Philanthropy, Reporting on Mastercard Foundation's 2025 Financial Position and Grantmaking Activities, September 2026. https://www.insidephilanthropy.com/
[5] Mastercard Foundation, “Reflections on Seven Years of Implementation and Learning,” Mastercard Foundation, 2026. https://lessonslearned.mastercardfdn.org/en/impact-report
[6] Mastercard Incorporated, Public Disclosures Concerning Mastercard Foundation's Investment Diversification and Shareholdings, 2023. https://www.mastercard.com/
[7] Mastercard Foundation, “Program Development Guide,” Mastercard Foundation. https://mastercardfdn.org/en/program-development-guide/
[8] Mastercard Foundation, Public Information on the Establishment and Operations of Mastercard Foundation Asset Management (MFAM), 2024. https://mastercardfdn.org/
[9] Mastercard Foundation, Announcement Concerning the CEO Transition from Reeta Roy to Sewit Ahderom, 2025. https://mastercardfdn.org/
[10] Mastercard Foundation, 2024 Form 990 and Related Financial Information, 2024. https://mastercardfdn.org/en/our-financials/
[11] OECD, “Development Co-operation Profiles: Mastercard Foundation,” OECD, 2025. https://www.oecd.org/en/publications/development-co-operation-profiles_04b376d7-en/mastercard-foundation_7a272340-en.html
[12] Mastercard Foundation, Official Information on the EleV Strategy for Indigenous Communities in Canada. https://mastercardfdn.org/