On Thursday, IPAP was unveiled by Trade and Industry Minister Rob Davies.
"We certainly welcome the boost of commitment to the second phase of IPAP that promises to support the clothing, textile, footwear, and leather sectors, and its emphasis on local procurement and a strategic trade policy," Fedusa said in a statement.
However, it said there was not enough focus on the development of the service sector which was a vital component of South Africa's economy.
"Fedusa's view is that the money allocated from the national Budget is sufficient in building an industry that can grow the economy but in order to do so we need to ensure that we work smarter and not harder, through a targeted policy that would assist industries within the economy that would be able to sustain themselves in the future ... industries such as the service sector," general secretary Dennis George said.
The creation of jobs to eradicate poverty and to introduce the youth into the jobs market would only benefit the economy if the jobs were sustainable and decent.
"We need to now, more than ever before become more internationally competitive, not only through our manufacturing but very importantly through our service delivery, that is seriously lacking," George said.
"Partly due to its colonial history and diverse demographics South Africa is particularly well-placed to deliver services to large-scale consumer regions such as the United States and Europe, and more specifically the United Kingdom."
He said South Africans had a close cultural bond with the Anglophone countries and therefore services industries such as distance education, telesales, call centres and travel centres could bring enhanced growth to the economy.
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