The Ivorians succumbed to their first loss of the tournament despite leading the match heading into half-time, with substitute Denis Undav scoring a brace including a injury time winner.
"Both teams deserved to win and had the chances to win the game," said Fae after the match.
"Well done to Germany. They won the game because of their experience. We had a great game, and I am really proud of how my players play against one of the favourites of the competition. We have to use this defeat for the rest of the tournament.
"We could have scored a second goal at 1-1, but we missed our chance. But they scored theirs. Undav was so calm when he took his chance. That's experience."
The Ivorians remain in second spot of Group E, needing a victory against 83rd ranked Curacao to progress to the knockout stage.
"We will use this to continue to grow and correct the little mistakes that we make," added the Ivorian coach.
"We still have our destiny between our feet, and we could qualify without having to rely on other results."