The announcement came after days of building pressure on the 93-year-old authoritarian leader, who was feared by many of his citizens through his long and often repressive rule.
"We are just so happy that things are finally going to change," Togo Ndhlalambi, 32, a hairdresser, told AFP.
"We woke up every morning waiting for this day. This country has been through tough times."
After a week of political turmoil, Zimbabweans reacted with shock and unfettered joy.
"I am hoping for a new Zimbabwe ruled by the people and not by one person.
"We need leaders who are selected by the people and not rulers. I am looking forward to get a job after our economy recovers."
Massive crowds gathered within minutes of the shock announcement to parliament.
Men were breakdancing, women were singing and children were in tears, all brandishing national flags and praising General Constantino Chiwenga -- the man who led the army takeover -- as the news began to sink in.
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