Among the Dagbamba of northern Ghana, the customary practice of child fostering is not the sole responsibility of biological parents, but rather a collective responsibility of the extended family and the larger society. This makes child fostering an age‐old, informal socio‐cultural practice and an integral aspect of social life. Even though the intentions behind child fostering are often good, fostering may also be associated with some dangers such as child labour. In recent years, the debate as to whether child fostering amounts to child labour has been extended to northern Ghana's alleged witches' camps; places where elderly women accused of witchcraft are sheltered. Drawing on one‐to‐one interviews with selected children, alleged witches and community elders, and supplemented by personal experiences growing up in Dagbambaland, this article examines child fostering in relation to child labour in these settlements. Using qualitative ethnographic data, our findings show that what is described as child labour in these settlements is a necessary evil for the category of children who live in these settlements.