(CNN)Fast cars thunder down tree-lined avenues. Luxury yachts sway in the sparkling marina, while diners in trendy beach-side restaurants clink Champagne glasses, enjoying the gentle ocean breeze.
Extractive industries like mining are susceptible to tax avoidance which, even when legal, stops the host country from getting the best deal in exchange for its natural resources. A report by Tax Justice Network-Africa and ActionAid International estimates that Kenya, Uganda, Tanzania and Rwanda lose up to $2.8 billion a year from all tax incentives and exemptions. The charity Christian Aid highlights the example of Sierra Leone whose tax expenditure -- the amount of revenues lost by granting of tax incentives and exemptions -- amounted to more than eight times the health budget and seven times the education budget in 2012.