By Gordon Bell

CAPE TOWN (Reuters) - United States companies were playing "catch-up" after a sharp rise in investment into Africa by China, a top U.S. official said on Thursday.

"I think there is a lack of information about the quality of opportunities and potential that continues to exist (in Africa) within the American business community," said Robert Mosbacher, President of the U.S.'s Overseas Private Investment Corporation

(OPIC).

"I think there is a bit of catch-up going on," he told reporters at a U.S.-Africa investment summit.

OPIC is a U.S. government agency operating in 140 countries that promotes and helps finance private sector investments outside the United States.

Total foreign direct investment into Africa was $38.8 billion in 2006, with Nigeria and Egypt making up the biggest shares, according to data from UNCTAD, the United Nations' trade and development agency.

China's share of the investment has risen sharply, with it offering billions of dollars in loans and for projects, largely to win resources to help feed its booming economy, and boost its international presence.

The bulk of investment by U.S. companies has been in oil, while China has diversified its interests from resources to other sectors including banking.

In the biggest foreign investment ever into Africa, China's ICBC bank last month agreed to buy 20 percent of South Africa's Standard Bank for $5.6 billion.

In 2005, China invested just $400 million in the continent.

But critics have raised questions over China's human rights record and what they say is the lack of transparency in some of the deals with African countries.

Mosbacher said Chinese investments often merely continued poor governance.

"BAD GOVERNANCE PERPETUATED"

"I am concerned that the massive investment (from China) is not as focused on priorities such as the rule of law, enforceability of contracts, transparency and accountability as the United States and Europe are," he said.

"In fact, in some cases, I think it perpetuates bad governance."

Mosbacher said American companies had in the past been put off by conflict and corrupt governments, choosing to invest in other, more stable, emerging regions.

For many investors, a lack of contract enforceability and adherence to the rule of law remained a deterrent, and OPIC wanted to assist governments improve these to help attract more investment.

"Because of conflicts ... Africa was not on a par in terms of appeal (so) I think it was overlooked," he said.

"Now people are paying attention and saying ... this is a wonderful place for investment that really has a tremendous potential for return. So we are playing catch-up," Mosbacher added, saying U.S. investments may offer more longer term benefits than those from China.

"My biggest concern would be whether they are as committed to try to bring those things (rule of law and accountability) about, as we are ... Whether or not you end up with the quality of investment you want, only history will sort out," he said.