Jonathan Moyo, minister of tertiary education, told reporters it was a fitting tribute to the 93-year-old president’s “commitment to education and his exemplary leadership”.
It is unclear where the money will come from in a country where unemployment and poverty is endemic.
Economic output has halved since 2000.
Last year, more than four million Zimbabweans were in need of food aid due to drought. The country was once known as the breadbasket of southern Africa.