Here is what I have chouby:
in functions.php:
function ssm_localize_theme() {
// Retrieve the directory for the localization files
$lang_dir = CHILD_DIR . '/languages';
// Set the theme's text domain using the unique identifier from above
load_theme_textdomain('zoll', $lang_dir);
} // end ssm_localize_theme
add_action('after_setup_theme', 'ssm_localize_theme');
And then where necessary I have the items localized in the theme, like so:
<div class="language-picker">
<h4><?php _e('Choose Your Preferred Language', 'zoll'); ?></h4>
<?php pll_the_languages(array('dropdown'=>1)); ?>
</div>
Is this not correct?