In a small pot over medium-low heat place ½ cup of water and dried chili. Cook for about 10 minutes. Drain chili and place in a blender with tomatoes and vegetable broth.

Heat the oil in a large pot over medium high heat. Add the onions and cook for about 3 minutes. Reduce the heat to medium and add the garlic, red and green pepper and cook for additional 2 minutes. Add the cumin, and cook for 30 seconds more.

Add the beans and tomato-chili mixture to the pot and simmer for about 15-20 minutes.

Add the sugar, cilantro and tomato paste. Cook for 5 minutes more. If the chili is too thick, use some of the broth you set aside. Add salt and pepper to taste.