CAPE TOWN (Reuters) - South African police fired stun grenades, water canon and tear gas on Wednesday to disperse students protesting outside parliament over the cost of university tuition fees, a Reuters witness said.

The demonstration took place as Finance Minister Pravin Gordhan was delivering his medium term budget policy statement.

(Reporting by Wendell Roelf and Stella Mapenzauswa; Writing by Joe Brock; Editing by James Macharia)