With an eye on tapping into South Africa's growing online market, E*Trade will retain 60 percent of the new company while financial services provider E-data Holdings, based in Johannesburg, will take a 40 percent stake, E*Trade announced today.
E*Trade Africa will launch sometime next year, according to a company statement.
E*Trade Africa will compete against five new online investment companies for South Africa's 1.2 million Internet users. The country's number of users has doubled every year since 1994, according to E*Trade, and that makes South Africa an attractive market to jump into as Internet growth in the United States is slowing.
E*Trade operates online financial services in eight countries, including Japan, Great Britain and Canada.