Moçambique (mŏsəmbēˈkə) [key] or Mozambique mōˌzəmbēkˈ, city (1997 pop. 42,407), NE Mozambique, a seaport on a small coral island in the Mozambique Channel (an arm of the Indian Ocean). It is c.3 mi (5 km) from the mainland town of Lumbo, a terminus of a railroad into the interior. The city is a trade center; exports include cashew nuts and timber. Moçambique was occupied by the Portuguese in 1505 and was the capital of the Portuguese holdings in Mozambique until 1907. Still standing are three old forts and the governor's palace, which attract numerous tourists.