With a sharp broad blade, the Machete is designed for harvesting sugar cane, or clearing through forest undergrowth. However, this doesn't stop it from being an effective melee weapon with a longer range than most. One strong hack with this weapon will take any target down quickly and quietly.
The machete can be purchased from all fences after "Dear Uncle Tacitus".
It can also be looted of the corpses of Night Folk at any time.
It can also be picked up during the Stranger side-mission “A Fine Night For It”.
It can also be looted from a Bounty hunter attacking Charles in the mission "The First Shall Be the Last"