This paper attempts to analyze the state of democracy in Africa and argues that its stalled nature undermines the African Union governance agenda. It draws attention to the existing correlation between democracy and governance which is derived from key indicators, including elections, framework of accountability, political stability, government effectiveness, and quality regulation, rule of law and corruption control. These indicators are instructive in categorizing states, characterizing regimes and determining what constitutes a stalled regime. Furthermore, it explores the challenges of consolidation emanating from states at institutional, cultural and structural aspects and reconciles their compatibility with the notion of democracy. Finally, it shows that democracy as a mechanism of state-building and governance in Africa is not only dynamic, but a burden owing to its divergent meanings, trajectory and purpose in different contexts. These characteristics pose the challenge of integrating democracy in the context of diffusion and consolidation of state-building, considered important prerequisites for effective governance.