New Zealand held on to beat the Junior Springboks 48-45 in front of close to 15,000 spectators at the Nelson Mandela Bay Stadium in Gqeberha on Sunday to retain the title in dramatic fashion.
Speaking to the media afterwards, Foote said his players can be proud of their effort, although they just fell short in a brilliant, high-scoring, and hugely entertaining match.
"There are a lot of positives to take from that performance; we are on a massive journey together and I've only met Riley Norton and the guys back in November, so we are definitely working hard on our game model and principles which everyone understands now," said Foote.
"From a character and leadership perspective, we are in a good place, and the lessons we learnt will be of huge benefit as we approach the World Rugby U20 Championship next month in Italy."
The South Africans played their part in a breathtaking attacking game, which delivered more than 90 points and went down to the wire, with New Zealand under huge pressure and playing with 13 men at the end.
"I think Melusi (Mthethwa, the team's backline coach) has done a great job in terms of our attack and I really feel that the players have clarity on how we want to play," said Foote.
"We played some exciting and brilliant attacking rugby during the tournament and just to hear the crowd get behind us when we started to light it up was exceptional.
"We know we are not the finished product, and we know we have a lot of work to do, but I do think our attack has come a long way and the guys are loving the way we are attacking."
Foote said the Junior Bok coaching staff are keen to send some players back to their provincial unions to play in the SA Rugby U21 Cup competition: "We will take it case by case, but some players will go back to their provinces to play in the U21 competition,
"It's a strong competition and the players are well-coached there, and we are keen for them to keep going. There will be some whose load we will have to manage, but we will do our medicals and take it case by case."
SA U20 captain Riley Norton, who again had a solid game at lock, was also full of praise for the players' efforts, on and off the field, during the tournament.
"To have played these high-pressure games against such quality opposition before the World Champs is going to be vital for us," said Norton.
"The lessons we learnt, the connections and relationships we have managed to build, not only on the field but off-field as well, and the trust we managed to create, are extremely important to us."
Norton also praised the Eastern Cape crowd for their support during the thrilling encounter: "It was a massive honour for us to play in front of such a passionate crowd. They came out in numbers on a Sunday afternoon, and we are privileged to represent them and play for the country. We want to say thank you to the people of Gqeberha for the support and hospitality throughout our three-week long stay here."