The announcement, which has been revealed in a state newspaper is likely to spark a backlash considering the nation’s poor human rights record under the despot.
The 93-year-old dictator resigned this week with the new president Emmerson Mnangagwa expected to form a cabinet within days.
Mugabe’s resignation, after a military intervention and mass protests in a slow-motion coup, sparked mass celebrations across the country.
His tenure saw brutal repression of dissent, election rigging and corruption, until eventually military pressure forced him to quit.
The Herald newspaper said: “It is hereby declared that February 21 of every year henceforth shall be a public holiday to be known as the Robert Mugabe National Youth Day.”
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The bank holiday accolade comes after Zimbabwe’s school of intelligence was named after him as well as various building and roads across the country.
According to the newspaper, calls for the former president’s birthday to be made a national holiday began in August, after intense lobbying by the Zanu-PF Youth League.
The League was established in 1986 to celebrate the principles and ideals of the former liberation war fighter who has ruled the country for a 37 years.
They wanted the day to be declared a national holiday saying they wanted Mugabe to be recognised for the role he played in empowering the country’s youths.
Last week, President Mnangagwa said Mugabe should be given the respect and recognition he deserved as one of the founders of Zimbabwe.
In his acceptance speech, he said: “To me personally, he remains a father, mentor, comrade-in-arms and my leader.”
The former leader has been assured that he will remain safe and will be protected in Zimbabwe, despite rumours that he and his wife Grace were planning to flee.
Following the news that Prince Harry and Meghan Markle will be getting married next year, the country has been speculating the possibility of an extra day off.
However, Downing Street has sadly so far said that there are no plans for a bank holiday to mark the wedding.