He was punished for theft by being expelled from the Mozambican Army and was placed in a re-education camp at Gorongosa.

In 1977, Matsangaissa was appointed by the Rhodesians as leader of the Mozambican National Resistance (RENAMO) in an effort to indigenize the rebel group.

Matsangaissa was killed in action in a 1979 raid against FRELIMO in Sofala Province, Mozambique.

Former members of RENAMO commemorated his death in Gorongosa on 17 October 1997, although the town administrator rejected their plan to build a tomb in his memory.

In the elections of 2008, FRELIMO reassumed control of the Assembly and attempted to return the roundabout to its old name.