Extended Festive Trading Hours Generate Less To Alcohol Levy

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Botswana collected just under P4 million in Alcohol Levy revenue during the 2025 festive season under newly introduced extended trading hours, according to information presented in the National Assembly, offering an early glimpse into the economic and social impact of longer operating hours for bars and bottle stores.

Responding to a parliamentary question from Shashe West Member of Parliament Jeremiah Frenzel, the Minister of Trade and Entrepreneurship, Tiroaone Ntsima revealed that the Alcohol Levy collected between 24 December 2025 and 4 January 2026 amounted to P3,909,871.15.

This marked a notable decline from the P5,920,233.20 collected during the same festive period in 2024, despite the government’s decision to allow extended trading hours as part of efforts to stimulate the night-time economy and test the viability of a 24-hour economic model.

The figures suggest that while longer operating hours were intended to boost activity in the hospitality sector, the policy did not immediately translate into higher levy collections. The outcome comes against the backdrop of Botswana’s continued heavy spending on alcohol and beverages, which remain one of the most significant components of the country’s food and beverage import bill.

According to Statistics Botswana’s December 2025 report, “Beverages, Spirits and Vinegar” ranked as the second-largest category of food-related imports, contributing 17.6 percent of the total food and beverage import bill for the month.

Imports in this category were valued at P188 million, down sharply from P247.5 million in November 2025 and lower than the P228.1 million recorded in December 2024. Beer made from malt dominated the category at P67.4 million, followed by other fermented beverages such as cider, mead and sake at P45.6 million, while other waters accounted for P20.4 million.

Wine, whisky, gin and liqueurs also contributed to the import mix. Annual figures show Botswana spent P2.53 billion on beverages, spirits and vinegar in 2024, a drop from P3.82 billion in 2023, indicating a broader downward trend in expenditure even as the category remains a major consumer staple.

Police statistics presented to Parliament painted a mixed picture of the social effects of the extended trading hours. A total of 6,484 offences were recorded during the 2025 festive period, compared with 6,820 offences during the same period in 2024, reflecting a reduction of 336 cases or five percent. Authorities attributed part of the decline to reduced movement between entertainment areas at night, which also contributed to fewer reported noise and nuisance cases. Road traffic accidents remained unchanged at 120 cases over the festive period, suggesting stability in that category.

However, the report highlighted a concerning increase in drunken driving cases, which rose to 618 during the 2025 festive season compared with 516 in 2024. The increase underscores ongoing public safety concerns as Botswana explores policies aimed at expanding nightlife and economic activity beyond traditional operating hours.

The festive-season figures add to the broader policy debate around Botswana’s evolving night-time economy and the role of the Alcohol Levy, which government has previously said is helping fund creative arts and youth-led content procurement initiatives. As policymakers weigh the benefits of extended trading hours against revenue outcomes and public safety considerations, the latest data provides a snapshot of both the opportunities and the challenges emerging from the country’s push toward a more vibrant after-hours economy.

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