According to The Herald newspaper, the 93 year old president and his wife Grace gave Junior Gumbochuma the huge sum, while the couple’s children gave her $10,000.
''The gift was to thank Mrs Gumbochuma, a pastor, for the pivotal role she played in raising the First Family’s children,''
Gumbochuma, who is Grace Mugabe's elder sister, celebrated her birthday at one of the Mugabes' farms in Shamva, northeast of Harare.
The Herald newspaper also reported that Zimbabwe's economy has been on a downturn for over a decade with many banks running out of cash, forcing people to queue for hours to make withdrawals often limited to only $20 a day.
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