Heat the oil in a frypan, add the onion and cook, stirring, until soft and transparent.
Place the capsicums in a heavy saucepan or casserole, pour in a little water, cover and simmer. When onions are soft, stir into the capsicums.
Add the sausages to the same frypan that was used to cook the onions. Brown over medium high heat on all sides, then add to the capsicums. Add a little more water if too dry. Cover and simmer 20 minutes, until vegetables are tender.
Stir in tomatoes, tomato paste and tomato sauce. Add garlic, paprika, salt and pepper. Simmer at least another 10 minutes. The longer it simmers, the better it tastes!