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Located just north of Mutare, the settlement is a mining village. Penhalonga was made famous by the discovery of ancient gold artefacts manufactured by tribes in the area. The area also supplies Bauxite clay to most of the countries potters. Bauxtie clay is a key ingredient in pottery. The area is home to Zimbabwe's forestry industry, forestry farms and several timber mills. There are two possible origins to the name, 1. 'Penha' - translated from Portuguese, meaning Rocky Mountain and 'Longa' meaning long,
2. Panoronga which when translated from local language Shona, means "the place that shines.