It was founded during the Portuguese colonial era on 4 October 1934 as Clube Desportivo Malhangalene, deriving its name from the historic quarter of the city.

The sports club was founded during the Portuguese colonial era on 4 October 1934 as Clube Desportivo Malhangalene, deriving its name from the historic quarter of the city of Lourenço Marques, the name of Maputo at the time.

The basketball team won the Championship of Portugal in 1974, the last year in which clubs from Mozambique participated in this competition due to the events resulting from the Carnation Revolution on 25 April 1974 and the subsequent declaration of independence of Mozambique from Portugal on 25 June 1975.

Fernando Amaral Adrião (1939–2006), between 1958 and 1974 five times world champion, commenced his career with CD Malhangalene.

Since the introduction of a unified national first division, the Moçambola, in 2000 the footballers of Estrela Vermelha played four seasons in the league, the sixth rank of 2007 being the highlight.