The Palácio da Ponta Vermelha ("Red Point Palace") sits on a clifftop bluff above the south-eastern end of the bay, looking across the water to Katembe. The salmon-pink palace was built in 1887 for the colonial governor and is now the official residence of the President of Mozambique. It is named for the red soil of the headland on which it stands.
The grounds are closed to the public and the gates are heavily guarded, but the bluff itself — Ponta Vermelha — is a good walking route and a fine sunset viewpoint, particularly from the palm-shaded promenade just outside the palace walls. The buildings can be seen clearly from boats out in the bay.