It is believed by some historians that Vicente Yáñez Pinzón had set anchor in a bay in Cabo de Santo Agostinho on January 26, 1500, however the Portuguese discovery of Brazil was by Pedro Álvares Cabral on April 21, 1500 is officially recognized instead.

Cabo de Santo Agostinho has both an industrial section that is centered on the Suape port and many tropical beaches and nature reserves.

[citation needed] The main economic activities in Cabo de Santo Agostinho are tourism, commerce and a strong and diverse general industry sector located near the Suape port.

[citation needed] Suape port is an international port located in the city of Ipojuca in the state of Pernambuco, between the municipalities of Ipojuca and Cabo de Santo Agostinho, within the Recife metropolitan area and distant 40 km south of the capital (Recife).

Its logistic advantages have attracted national and international investment on a huge scale, with over US$10 billion expected by 2010.