Roast the bell peppers, then seed and peel off the charred skin. Chop the roasted and skinned pepper flesh.
In a medium saucepan, combine roasted bell peppers, diced tomatoes, garlic, sugar, chili pepper flakes, and salt. Bring to a simmer over medium high heat.
Reduce heat to medium low, just so the matbucha cooks at a medium and constant simmer. Stir every ten minutes to make sure it doesn't start to stick to the bottom of the pan. Let the mixture cook for about 85 minutes, or until most of the liquid has reduced and cooked down. When most of the liquid has evaporated and the mixture is quite thick, you are ready to add your oil.
In a small bowl, whisk together olive oil and paprika then pour into saucepan and stir.
Let the matbucha cook for about 30 minutes more, stirring every 5 minutes. Towards the end of cooking, taste the mixture and adjust seasoning as desired-- more sugar for sweetness, chili pepper flakes for spice, and salt if needed.
Remove the matbucha from heat and allow to cool completely. Matbucha is best served at room temperature or chilled.