Machala is a city in south-west Ecuador. It is the capital of the El Oro Province, and is located near the Gulf of Guayaquil on fertile lowland…Machala is a city in south-west Ecuador. It is the capital of the El Oro Province, and is located near the Gulf of Guayaquil on fertile lowlands. Machala has a population of 288,072 ; it is the sixth-biggest city in the country, and the second-most important port. It has been referred to as the Banana Capital of the World.