This Discussion Paper explores the challenges that ethnicity poses for democratisation and development in Africa. It provides an overview of the literature on ethnicity and democratisation and an analysis of the trends on the continent since the end of the Cold War. In this regard, it critically examines perspectives on the impact of ethnicity on democracy and analyses the ethnicity-citizenship nexus in the context of the national democratic question in Africa. This provides the basis for the analysis of emerging challenges facing Africa and the way forward. The paper provides additional insights into the ongoing debates about democracy and the nation-state question in Africa and is of interest to scholars, practitioners and the general reader.