[citation needed] From the 1970s to 1994 the township was administrated by the now defunct KaNgwane District Bantustan.

It played a major role as an official residency for Members of Parliament (KaNgwane District Bantustan).

Like many South African townships, Matsulu was embroiled in Apartheid-era violence during the 1980s and the early '90s.

The township's economy is heavily dependent on its mother city, Mbombela, where most of its employed skilled and semiskilled residents work.

However, there is no dedicated CBD, nor industrial site, so many businesses operate unregulated at random locations with little municipal control.